Income taxes recognized in the income statements can be detailed as follows:


	Year Ended December 31,
(in thousands of $)	2025		2024		2023
Current year	$	(351,264)	$	(53,462)	$	(9,592)
Income tax prior years		13,224		(383)		(2,080)
Current tax expense		(338,040)		(53,845)		(11,672)

Recognition of deferred tax assets		—		724,700		—
Originating and reversal of temporary differences		351,468		77,005		21,115
Deferred tax benefit		351,468		801,705		21,115

Total income tax benefit	$	13,428	$	747,860	$	9,443

The difference between the provision for income taxes and the amount that would result from applying the Dutch

statutory tax rate to income before provision for income taxes is as follows:


	Year Ended December 31,
(in thousands of $)	2025		2024		2023
(Profit)/Loss before taxes	$	(1,278,607)	$	(85,180)	$	304,496
Income tax (expense)/benefit calculated at the Dutch statutory federal income tax rates		(329,881)		(21,977)		78,560
Effect of intercompany asset deal/transaction		—		—		396
Effect of expenses not deductible in determining taxable		(6,188)		(5,383)		(2,674)
Effect of share-based payment expenses that are not deductible in determining taxable results		(29,673)		(13,151)		(43,040)
Effect of stock issue expenses that are not taxable in determining taxable results		—		—		18,620
Effect of tax credits and incentives1)		291,865		102,823		87,123
Effect of change of (de)recognition of deferred tax assets on tax losses		(2,500)		187,361		(2,282)
Effect of different tax rates in jurisdictions in which the company operates		9,685		4,169		(3,509)
Effect of change of (de)recognition of deferred tax assets		—		535,598		(124,457)
Effect of foreign exchange translation		87,070		(38,307)		—
Other		(6,950)		(3,273)		706
Income tax (expense)/benefit recognized in the consolidated statements of profit or loss	$	13,428	$	747,860	$	9,443

1)This item was renamed from ‘Effect of concessions’ to enhance clarity for financial statement presentation.

Deferred tax assets are recognized to the extent that it is probable that sufficient taxable profits will be available in the

look-forward period. In the fourth quarter of 2024, the Company recognized a consolidated tax benefit for previously

unrecognized net deferred tax assets amounting to $725 million, based on the weight of available evidence.

The amount of deferred tax assets and liability by type of temporary difference can be detailed as follows:


	As of December 31, 2025
(in thousands of $)	Assets		Liabilities		Net
Deferred tax assets/(liabilities)
Innovation income deduction credit	$	159,360	$	—	$	159,360
Net operating loss carryforwards		138,487		—		138,487
Capitalized R&D expenses		445,550		—		445,550
Intangible assets		94,383		—		94,383
Accruals and allowances		122,654		—		122,654
Share-based payments		99,408		—		99,408
Profit in inventory		225,033		—		225,033
Other tax carryforwards		16,206		—		16,206
Property, plant and equipment		4,130		(2,121)		2,009
Non-current fixed assets		—		(8,683)		(8,683)
Other		1,944		(498)		1,446
Netting by taxable entity		(11,302)		11,302		—

Net deferred tax assets	$	1,295,853	$	—	$	1,295,853


	As of December 31, 2024
(in thousands of $)	Assets		Liabilities		Net
Deferred tax assets/(liabilities)
Innovation Income deduction	$	122,306	$	—	$	122,306
Net operating loss carryforwards		177,599		—		177,599
Capitalized R&D expenses		312,420		—		312,420
Intangible assets		100,321		—		100,321
Accruals and allowances		25,037		—		25,037
Share-based payments		71,481		—		71,481
Profit in inventory		110,474		—		110,474
Other tax carryforwards		8,874		—		8,874
Property, plant and equipment		3,392		(3,012)		380
Non-current fixed assets		—		(6,289)		(6,289)
Other		2,265		(569)		1,696
Netting by taxable entity		(9,870)		9,870		—

Net deferred tax assets/(liabilities)	$	924,299	$	—	$	924,299


	As of December 31, 2023
(in thousands of $)	Assets		Liabilities		Net
Deferred tax assets/(liabilities)
Accruals and allowances	$	13,189	$	—	$	13,189
Share-based payments		23,310		—		23,310
Profit in inventory		52,026		—		52,026
Other tax carryforwards		6,339		—		6,339
Property, plant and equipment		2,136		(1,550)		586
Non-current fixed assets		—		(5,155)		(5,155)
Other		1,760		—		1,760
Netting by taxable entity		(1,549)		1,550		1

Net deferred tax assets/(liabilities)	$	97,211	$	(5,155)	$	92,056

The change in net deferred taxes recorded in the consolidated statements of financial position can be detailed as follows:


(in thousands of $)	Deferred tax assets		Deferred tax liabilities
Balance on January 1, 2025	$	924,299	$	—
Recognized in profit or loss		264,021		—
Recognized in equity		20,780		—
Effects of change in foreign exchange rate		86,753		—
Balance on December 31, 2025	$	1,295,853	$	—


(in thousands of $)	Deferred tax assets		Deferred tax liabilities
Balance on January 1, 2024	$	97,211	$	(5,155)
Recognized in profit or loss		758,264		5,155
Recognized in equity		30,846		—
Effects of change in foreign exchange rate		37,978		—
Balance on December 31, 2024	$	924,299	$	—


(in thousands of $)	Deferred tax assets		Deferred tax liabilities
Balance on January 1, 2023	$	79,222	$	(8,406)
Recognized in profit or loss		17,685		3,430
Recognized in equity		381		—
Effects of change in foreign exchange rate		(77)		(179)
Balance on December 31, 2023	$	97,211	$	(5,155)

The Company also has unrecognized tax losses carried forward in the Netherlands in the amount of $56 million as of

December 31, 2025, compared to $46 million on December 31, 2024 and $33 million on December 31, 2023. These

losses carried forward do not have an expiration date based upon the applicable enacted tax legislation in the

As of December 31, 2025, the Company has $209 million of undistributed earnings attributable to foreign subsidiaries

(compared to $125 million on December 31, 2024 and $128 million on December 31, 2023) for which no provision for

deferred tax liabilities have been recognized because the Company has control over the timing of the reversal of the

temporary differences and there are no plans of distributions in the foreseeable future.

The Company is subject to the OECD Pillar Two Directive and implementing domestic laws in 2025. The Pillar Two

Rules does not have a material impact on our effective tax rate or the recognition of our deferred tax assets.

The Company continues to apply the exception relating to recognizing and disclosing information about deferred tax

assets and liabilities related to legislation that is enacted to implement the OECD Pillar Two model rules.