Income taxes (Tables)

12 Months Ended

Dec. 31, 2025


EURm	2025	2024	2023
Current tax expense	(478)	(439)	(429)
Deferred tax benefit/(expense)	201	59	(391)
Total	(277)	(380)	(820)

Reconciliation of the difference between income tax computed at the statutory rate in Finland of

20% and income tax recognized in the income statement:


EURm	2025	2024	2023
Income tax expense at statutory rate	(183)	(418)	(294)
Permanent differences	51	149	146
Non-creditable withholding taxes	(39)	(44)	(38)
Income taxes for prior years	1	10	23
Effect of different tax rates of subsidiaries operating in other jurisdictions	(28)	(46)	(143)
Effect of deferred tax assets not recognized(1)	(58)	(44)	(533)
Benefit arising from previously unrecognized deferred tax assets	14	81	25
Net increase in uncertain tax positions	(23)	(29)	(15)
Change in income tax rates	(52)	(27)	32
Income taxes on undistributed earnings	40	(12)	(23)
Total	(277)	(380)	(820)

(1)In 2023, Nokia recognized a deferred tax expense and a decrease in deferred tax assets of EUR 0.4 billion due to an internal

transaction related to an operating model change that led to a remeasurement of deferred tax assets in Finland and the United

States.

Deferred tax assets and liabilities relate to the following:


	2025			2024
	Deferred	Deferred	Net	Deferred	Deferred	Net
EURm	tax assets	tax liabilities	balance	tax assets	tax liabilities	balance
Tax losses carried forward and unused tax credits	1 034	—		1 019	—
Undistributed earnings	—	(167)		—	(213)
Intangible assets and property, plant and equipment	2 968	(294)		2 957	(152)
Right-of-use assets	—	(194)		—	(131)
Defined benefit pension assets	—	(1 913)		—	(2 106)
Other non-current assets	20	(12)		24	(17)
Inventories	198	(5)		148	(12)
Other current assets	128	(37)		160	(69)
Lease liabilities	188	—		137	—
Defined benefit pension and other post-employment liabilities	781	—		917	—
Other non-current liabilities	7	(1)		8	—
Provisions	330	(47)		254	(75)
Other current liabilities	335	(84)		287	(106)
Other temporary differences	39	(23)		34	(27)
Total before netting	6 028	(2 777)	3 251	5 945	(2 908)	3 037
Netting of deferred tax assets and liabilities	(2 385)	2 385	—	(2 346)	2 346	—
Total after netting	3 643	(392)	3 251	3 599	(562)	3 037

Movements in the net deferred tax balance during the year:


EURm	2025	2024	2023
1 January	3 037	3 148	3 502
Recognized in income statement, continuing operations	201	59	(391)
Recognized in income statement, discontinued operations	—	—	(3)
Recognized in other comprehensive income	(21)	(77)	51
Acquisitions through business combinations(1)	45	2	—
Disposals	—	(75)	—
Other	—	—	(3)
Translation differences	(11)	(20)	(8)
31 December	3 251	3 037	3 148

(1)In 2025, acquisitions through business combinations relates to the acquisition of Infinera. For more information, refer to Note 6.2.

Acquisitions.

The amount of temporary differences, tax losses carried forward and tax credits for which no

deferred tax asset was recognized due to uncertainty of utilization:

Expiry of tax losses carried forward and unused tax credits:


	2025			2024			2023
EURm	Gross	Tax	Net	Gross	Tax	Net	Gross	Tax	Net
Remeasurements of defined benefit plans	(24)	7	(17)	408	(85)	323	(343)	61	(282)
Translation differences	(1 627)	(3)	(1 630)	537	8	545	(535)	7	(528)
Net investment hedges	111	(22)	89	(40)	8	(32)	135	(27)	108
Cash flow and other hedges	1	—	1	21	(3)	18	(61)	10	(51)
Financial assets at fair value through other comprehensive income	9	(2)	7	19	(5)	14	10	—	10
Other increase/(decrease), net	7	(1)	6	3	—	3	(4)	—	(4)
Total	(1 523)	(21)	(1 544)	948	(77)	871	(798)	51	(747)