Group Overview Operation and Financial Review Financials Other Information Sustainability and Governance Indofood Agri Resources Ltd. 112 Notes to the financial statements For the financial year ended 31 December 2025 18. Deferred tax (cont’d) Deferred tax assets and liabilities cover the future tax consequences attributable to differences between the financial and tax reporting bases of assets and liabilities, and the benefits of tax losses carry forward. As at 31 December 2025, the Company recognised deferred tax liabilities of Rp17.1 billion (2024: Rp18.7 billion) in respect of unremitted foreign interest income arising from cash at banks, short-term deposits and shareholder loan to a subsidiary. Pillar Two Income Taxes As disclosed in Note 11, the Group has applied the exception to the recognition and disclosure of deferred taxes related to the Pillar Two income taxes. Accordingly, the Group neither recognises nor discloses information about deferred tax assets and liabilities related to Pillar Two income taxes. Deferred tax income or expense recognised in consolidated statement of comprehensive income: Group 2025 2024 Rp million Rp million Deferred income tax movements: Property, plant and equipment and biological assets (66,992) 76,634 Adjustments of EIR amortisation of plasma receivables 11,477 (2,140) Changes in allowance of decline in market value and obsolescence of inventories (6,447) 4,079 Employee benefits liabilities (7,413) (16,986) Deferred inter-company losses 27,083 (30,665) Changes in provision for employee benefits expense (4,753) 7,507 Tax losses carry forward 20,675 18,223 Impairment loss of property, plant and equipment – (65,156) Others 16,211 25,196 Net deferred tax expense reported in the consolidated statement of comprehensive income (Note 11) (10,159) 16,692 Unrecognised tax losses At the end of the reporting period, the Group has total tax losses amounting to Rp2,076.7 billion (2024: Rp2,422.2 billion) that are available for offset against future taxable profits for up to five years from the date the losses were incurred as tax losses in Indonesia generally expire after 5 years. Deferred tax benefits of Rp447.9 billion (2024: Rp503.2 billion) attributable to Rp2,035.8 billion (2024: Rp2,287.3 billion) of these tax losses were not recognised as the recoverability was considered not probable. Unrecognised temporary differences relating to investments in subsidiaries The Group has not recognised a deferred tax liability of Rp1,033.0 billion (2024: Rp908.7 billion) as at 31 December 2025 in respect of undistributed profits of subsidiaries as the distribution is controlled and there is currently no intention for the profits to be remitted to Singapore.
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