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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2024
Major components of tax expense (income) [abstract] |
Summary of income tax payables | Current income tax payable consisted of the following items as of December 31:
|  | 2024 |  | 2023 |
Current tax payable |  | 60 |  | 61 |
Uncertain tax provisions |  | 119 |  | 93 |
Total income tax payable |  | 179 |  | 154 |
Summary of income tax expense | Income tax expense consisted of the following for the years ended December 31:
|  | 2024 | 2023 | 2022
Current income taxes |  |  |  |
Current year |  | 284 |  | 249 |  | 271 |
Adjustments in respect of previous years |  | 7 |  | 13 |  | 10 |
Total current income taxes |  | 291 |  | 262 |  | 281 |
Deferred income taxes |  |  |  |
Movement of temporary differences and losses |  | (100) |  | (114) |  | (50) |
Changes in tax rates |  | — |  | (4) |  | (4) |
Changes in recognized deferred tax assets* |  | 23 |  | 35 |  | (117) |
Adjustments in respect of previous years |  | 3 |  | 1 |  | (5) |
Other |  | — |  | (1) |  | (36) |
Total deferred tax benefit |  | (74) |  | (83) |  | (212) |
Income tax expense |  | 217 |  | 179 |  | 69 |
*In 2022, the increase of deferred tax assets is mainly driven by recognition of previously unrecognized historic losses due to positive outlook and business developments in our Bangladesh operations.
Summary of reconciliation between statutory and effective income tax | The table below outlines the reconciliation between the statutory tax rate of 9% in Dubai, United Arab Emirates in 2024, the statutory tax rate of 25.8% in the Netherlands in 2023 and 2022 and the effective income tax rates for the Group, together with the corresponding amounts, for the years ended December 31:
| 2024 | 2023 | 2022 | Explanatory notes
Profit / (loss) before tax from continuing operations | 704 | 559 | 802 |
Income tax expense at statutory rates noted above | (63) | (144) | (207) |
Difference due to the effects of: |  |  |  |
Different tax rates in different jurisdictions | (72) | 66 | 45 | Certain jurisdictions in which VEON operates have income tax rates which are different to the statutory tax rate of the ultimate parent entity VEON Ltd. In 2024, VEON Ltd redomiciled from the Netherlands to UAE which has a statutory tax rate of 9%. Profitability in countries with higher tax rates (i.e., Kazakhstan, Ukraine, Uzbekistan, Pakistan.) has a negative impact on effective tax rate. In 2023 and 2022, VEON Ltd was a Dutch tax resident subject to the statutory tax rate of 25.8%. In previous years, profitability in countries with lower tax rates (i.e. Kazakhstan, Ukraine) had a positive impact on the effective tax rate, offset with profitability in countries with higher rates (i.e. Pakistan, Bangladesh).
Non-deductible expenses | (14) | (50) | (46) | The Group incurs certain expenses which are non-deductible in the relevant jurisdictions. Such expenses mainly include intra-group expenses (i.e. interest on internal loans), certain non-income tax charges (i.e. minimum tax regimes) and other.
Non-taxable income | 40 | 30 | 11 | In 2024, the non-taxable income of US$40 mainly relates to the sale of subsidiaries in Kazakhstan of US$17 and a liquidation of a Maltese subsidiary which resulted in non-taxable FOREX gain of US$21. In 2023, the non-taxable income is mainly driven by the non-taxable FOREX gains incurred by Dutch Holdings on sale of subsidiaries of US$25. In 2022, non-taxable income is mainly driven by reversal of previously unrecognized management fees in Uzbekistan.
Adjustments in respect of previous years | (10) | (14) | (6) | In 2024, the effect of prior year adjustments mainly relates to tax return true-ups. In 2023, the effect of prior year adjustments mainly relates to tax return true-ups and the effects of 6% Super tax in Pakistan introduced in 2023 which had a retrospective impact on 2022. In 2022, the effect of prior year adjustments mainly relates to tax return true-ups and the effects of 4% Super tax in Pakistan introduced in 2022 which had a retrospective impact on 2021.
Movements in (un)recognized deferred tax assets | (23) | (35) | 117 | In 2024 and 2023, the movements in (un)recognized deferred tax assets are primarily caused by tax losses and other credits mainly in the Netherlands and Luxembourg, for which no deferred tax asset has been recognized. In 2022, the movements primarily relates to holding entities in the Netherlands and deferred tax asset recognition on previously unrecognized losses in Bangladesh of US$108. The increase of deferred tax assets in Bangladesh is mainly driven by recognition of previously unrecognized historic losses due to positive outlook and business developments in our Bangladesh operations.
Withholding taxes | (45) | (32) | 38 | Withholding taxes (WHT) are recognized to the extent that dividends from foreign operations are expected to be paid in the foreseeable future. In 2024, the net WHT of US$(45) mainly comprises of dividends received and anticipated dividends to be paid out in the next 12 months (i.e., DTL on outside basis). In 2023, the net WHT of US$(32) mainly comprised of WHT on interest from Russia of US$(16) and US$(15) of WHT provided for as a deferred tax on outside basis during 2023 on the dividends planned to be paid out in 2024 mainly from Pakistan, Kazakhstan and Uzbekistan. In 2022, the net WHT benefit of US$38 comprising of reversal of WHT provided for as a deferred tax on outside basis during 2022 on the dividends planned to be paid out in 2023 mainly relating to Ukraine and Russia.
Uncertain tax positions | (26) | 2 | (25) | The tax legislation in the markets in which VEON operates is unpredictable and gives rise to significant uncertainties (see ‘Source of estimation uncertainty’ below). In 2024, US$(26) mainly relates to the income tax exposure of the Dutch Fiscal Unity. During 2022, provisions were made for a dispute in Italy. The impact of movements in uncertain tax positions is presented net of any corresponding deferred tax assets recognized.
Change in income tax rate | — | 4 | 4 | Changes in tax rates impact the valuation of existing deferred tax assets and liabilities on temporary differences. In 2023, the statutory tax rate in Pakistan increased by 6% resulting in the total tax charge of 39%. In 2022, the statutory tax rate in Pakistan increased by 4% resulting in the total tax charge of 33%.
Other | (4) | (6) | — | In 2024, US$(4) mainly relates to minimum taxes in Pakistan. In 2023, others is impacted mainly by a CFC charge for US$(6).
Income tax expense | (217) | (179) | (69) |
Effective tax rate | 30.8 | % | 32.0 | % | 8.6 | % |
Schedule of deferred tax assets and liabilities in the statement of financial position | The Group reported the following deferred tax assets and liabilities in the statement of financial position as of December 31:
|  | 2024 | 2023
Deferred tax assets |  | 368 |  | 312 |
Deferred tax liabilities |  | (27) |  | (26) |
Net deferred tax position |  | 341 |  | 286 |
Summary of movements of deferred tax assets and liabilities | The following table shows the movements of net deferred tax positions in 2024:
|  | Movement in deferred taxes |
| Opening balance | Net income statement movement | Other movements | Closing balance
Property and equipment | (48) |  | 77 |  | (1) |  | 28 |
Intangible assets | 64 |  | (39) |  | (1) |  | 24 |
Trade receivables | 24 |  | 45 |  | (2) |  | 67 |
Provisions | 12 |  | 5 |  | — |  | 17 |
Accounts payable | 54 |  | (43) |  | — |  | 11 |
Withholding tax on undistributed earnings | (19) |  | — |  | — |  | (19) |
Tax losses and other balances carried forwards | 2,459 |  | (137) |  | 33 |  | 2,355 |
Non-recognized deferred tax assets | (2,277) |  | 181 |  | (41) |  | (2,137) |
Other | 17 |  | (15) |  | (7) |  | (5) |
Net deferred tax positions | 286 |  | 74 |  | (19) |  | 341 |
The following table shows the movements of net deferred tax positions in 2023:
|  | Movement in deferred taxes |
| Opening balance | Net income statement movement | Other movements | Closing balance
Property and equipment | (82) |  | 23 |  | 11 |  | (48) |
Intangible assets | 59 |  | 14 |  | (9) |  | 64 |
Trade receivables | 21 |  | 5 |  | (2) |  | 24 |
Provisions | 15 |  | (2) |  | (1) |  | 12 |
Accounts payable | 36 |  | 25 |  | (7) |  | 54 |
Withholding tax on undistributed earnings | (29) |  | 8 |  | 2 |  | (19) |
Tax losses and other balances carried forwards | 2,600 |  | 149 |  | (290) |  | 2,459 |
Non-recognized deferred tax assets | (2,395) |  | (147) |  | 265 |  | (2,277) |
Other | 13 |  | 7 |  | (3) |  | 17 |
Net deferred tax positions | 238 |  | 82 |  | (34) |  | 286 |
Summary of amount and expiry date of deductible temporary differences, unused tax losses and other carry forwards | VEON recognizes a deferred tax asset for unused tax losses and other credits carried forwards, to the extent that it is probable that the deferred tax asset will be utilized. The amount and expiry date of unused tax losses and other carry forwards for which no deferred tax asset is recognized are as follows:
As of December 31, 2024 | 6-10 years | More than 10 years | Indefinite | Total
Tax losses expiry |  |  |  |
Recognized losses | — |  | — |  | (473) |  | (473) |
Recognized DTA | — |  | — |  | 182 |  | 182 |
Non-recognized losses | — |  | (1,729) |  | (6,767) |  | (8,496) |
Non-recognized DTA | — |  | 413 |  | 1,639 |  | 2,052 |
Other credits carried forwards expiry |  |  |  |
Recognized credits | (37) |  | — |  | — |  | (37) |
Recognized DTA | 37 |  | — |  | — |  | 37 |
Non-recognized credits | — |  | — |  | (332) |  | (332) |
Non-recognized DTA | — |  | — |  | 86 |  | 86 |
As of December 31, 2023 | 6-10 years | More than 10 years | Indefinite | Total
Tax losses expiry |  |  |  |
Recognized losses | — |  | — |  | (388) |  | (388) |
Recognized DTA | — |  | — |  | 146 |  | 146 |
Non-recognized losses | — |  | (1,204) |  | (7,764) |  | (8,968) |
Non-recognized DTA | — |  | 300 |  | 1,951 |  | 2,251 |
Other credits carried forwards expiry |  |  |  |
Recognized credits | (36) |  | — |  | — |  | (36) |
Recognized DTA | 36 |  | — |  | — |  | 36 |
Non-recognized credits | — |  | — |  | (97) |  | (97) |
Non-recognized DTA | — |  | — |  | 26 |  | 26 |

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