Deferred tax assets and liabilities

12 Months Ended

Dec. 31, 2021

Income tax benefit (expense)


(in thousands of USD)	2021	2020	2019
Current tax
Current period	(206)	(575)	(1,066)
Changes related to prior years	436	—	—
Total current tax	230	(575)	(1,066)

Deferred tax
Recognition of unused tax losses/(use of tax losses)	201	(1,369)	474
Other	(4)	—	(10)
Total deferred tax	197	(1,369)	464

Total tax benefit/(expense)	427	(1,944)	(602)


Reconciliation of effective tax	2021			2020			2019
Profit (loss) before tax			(339,204)			475,182			112,832

Tax at domestic rate	(25.00)	%	84,801	(25.00)	%	(118,796)	(29.58)	%	(33,376)
Effects on tax of :
Tax exempt profit / loss			4,541			241			317
Tax adjustments for previous years			436			—			34
Loss for which no DTA (*) has been recognized			27			(61)			(26)

Non-deductible expenses			(188)			(482)			(538)
Use of previously unrecognized tax losses and tax credits			4,101			267			4,066
Effect of Tonnage Tax regime			(84,881)			115,174			24,534
Effect of share of profit of equity-accounted investees			5,649			2,613			2,482
Effects of tax regimes in foreign jurisdictions			(14,059)			(900)			1,905
Total taxes	(0.13)	%	427	(0.41)	%	(1,944)	(0.53)	%	(602)

In application of an IFRIC agenda decision on ‘IAS 12 Income taxes’, tonnage tax is not accounted for as income taxes in accordance with IAS 12 and is not presented as part of income tax expense in the consolidated statement of profit or loss but

has been shown as an administrative expense under the heading General and administrative expenses. The amount paid for tonnage tax in the year ended December 31, 2021 was $3.3 million (2020: $3.5 million) (see Note 5).

* Deferred Tax Asset

Deferred tax assets and liabilities

Recognized deferred tax assets and liabilities

Deferred tax assets and liabilities are attributable to the following:


(in thousands of USD)	ASSETS	LIABILITIES	NET

Employee benefits	29	—	29
Unused tax losses & tax credits	27,650	—	27,650
Unremitted earnings	—	(26,322)	(26,322)
	27,679	(26,322)	1,357
Offset	(26,322)	26,322
Balance at December 31, 2020	1,357	—


Employee benefits	23	—	23
Unused tax losses & tax credits	66,304	—	66,304
Unremitted earnings	—	(64,781)	(64,781)
	66,327	(64,781)	1,546
Offset	(64,781)	64,781
Balance at December 31, 2021	1,546	—

Unrecognized deferred tax assets and liabilities

Deferred tax assets and liabilities have not been recognized in respect of the following items:


(in thousands of USD)	December 31, 2021		December 31, 2020
	ASSETS	LIABILITIES	ASSETS	LIABILITIES
Deductible temporary differences	291	—	38	—
Taxable temporary differences	—	(12,162)	—	(12,162)
Tax losses & tax credits	29,753	—	64,923	—
	30,044	(12,162)	64,961	(12,162)
Offset	(12,162)	12,162	(12,162)	12,162
Total	17,882	—	52,799	—

The unrecognized deferred tax assets in respect of tax losses and tax credits relates to tax losses carried forward, investment deduction allowances and excess dividend received deduction. Tax losses and tax credits have no expiration date.

The decrease in unrecognized deferred tax assets is mainly related to the use of investment deduction allowances in 2021.

A deferred tax asset (DTA) is recognized for unused tax losses and tax credits carried forward, to the extent that it is probable that future taxable profits will be available. The Group considers future taxable profits as probable when it is more likely than not that taxable profits will be generated in the foreseeable future. When determining whether probable future taxable profits are available the probability threshold is applied to portions of the total amount of unused tax losses or tax credits, rather than the entire amount.

Given the nature of the tonnage tax regime, the Group has a substantial amount of unused tax losses and tax credits for which no future taxable profits are probable and therefore no DTA has been recognized.

No deferred tax liabilities have been recognized for temporary differences related to vessels for which the Group expects that the reversal of these differences will not have a tax effect.

In December 2017, changes to the Belgian corporate income tax rate were enacted, lowering the rate to 29.58% as from 2018 and to 25% from 2020. These changes have been reflected in the calculation of the amounts of deferred tax assets and liabilities in respect of Belgian Group entities as at December 31, 2021 and December 31, 2020.

Movement in deferred tax balances during the year


(in thousands of USD)	Balance at Jan 1, 2019	Recognized in income	Recognized in equity	Translation differences	Balance at Dec 31, 2019

Employee benefits	37	(10)	—	(1)	26
Unused tax losses & tax credits	2,218	474	—	(3)	2,689
Total	2,255	464	—	(4)	2,715

	Balance at Jan 1, 2020	Recognized in income	Recognized in equity	Translation differences	Balance at Dec 31, 2020


Employee benefits	26	—	—	3	29
Unused tax losses & tax credits	2,689	(1,369)	—	8	1,328
Total	2,715	(1,369)	—	11	1,357

	Balance at Jan 1, 2021	Recognized in income	Recognized in equity	Translation differences	Balance at Dec 31, 2021


Employee benefits	29	(4)	—	(2)	23
Unused tax losses & tax credits	1,328	201	—	(6)	1,523
Total	1,357	197	—	(8)	1,546