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Income taxes (Tables) | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Components of (provision for) benefit from income taxes | The components of incom e tax expense are as f ollows:
Year ended December 31 (€, in millions) | 2023 | 2024 |  | 2025
Netherlands | 8,453.5 | 7,927.0 |  | 10,297.5
Foreign | 630.0 | 1,115.4 |  | 1,108.6
Income before income taxes | 9,083.5 | 9,042.4 |  | 11,406.1
Income tax (expense) / benefit current | (1,211.7) | (1,424.1) |  | (1,638.0)
Income tax (expense) / benefit deferred | (58.4) | 67.5 |  | (12.8)
Income tax (expense) / benefit Netherlands | (1,270.1) | (1,356.6) |  | (1,650.8)
Income tax (expense) / benefit current | (441.3) | (322.7) |  | (359.1)
Income tax (expense) / benefit deferred | 275.6 | (1.3) |  | (3.5)
Income tax (expense) / benefit Foreign | (165.7) | (324.0) |  | (362.6)
Total income tax (expense) / benefit current | (1,653.0) | (1,746.8) |  | (1,997.1)
Total income tax (expense) / benefit deferred | 217.2 | 66.2 |  | (16.3)
Total income tax (expense) / benefit | (1,435.8) | (1,680.6) |  | (2,013.4)
As of 2025, we have applied the guidance of ASU 2023-09 - Income Taxes (Topic 740) based on which allocation of income tax (expense) / benefit is determined according to the tax authorities to whom the income tax is eventually paid. For years 2023 and 2024 allocation is based on the entities bearing the tax, whereby the income tax expense for Netherlands also includes foreign tax expense that is born by our Dutch group entities. Current and deferred tax (expense) / benefit can be further broken down into:
Year ended December 31 (€, in millions) | 2023 | 2024 |  | 2025
Current year tax (expense) / benefit | (1,766.1) | (1,535.6) |  | (2,008.0)
Prior year tax (expense) / benefit | 113.1 | (211.2) |  | 10.9
Total current tax (expense) / benefit | (1,653.0) | (1,746.8) |  | (1,997.1)
Year ended December 31 (€, in millions) | 2023 | 2024 |  | 2025
Changes to recognition of operating losses and tax credits | 3.0 | (24.9) |  | (52.4)
Prior year tax (expense) / benefit | (85.2) | 93.1 |  | 51.7
Tax rate changes | 13.5 | — |  | 16.4
Origination and reversal of temporary differences, operating losses and tax credits | 285.9 | (2.0) |  | (32.0)
Total deferred tax (expense) / benefit | 217.2 | 66.2 |  | (16.3)
Above current year tax expense includes estimated global minimum tax expense of 0.0 million (2024: 2.5 million) that can be broken out as follows:
Year ended December 31 (€, in millions)3 | 2024 |  | 2025
Top-up tax expense based on local QDMTT 1 | (0.3) |  | —
Top-up tax expense based on IIR 2 | (2.2) |  | —
Global minimum tax (expense) / benefit | (2.5) |  | —
1.QDMTT = Qualifying Domestic Minimum Top-up Tax. 2.IIR = Income Inclusion Rule. 3.Global Minimum Tax rules first became effective as of 2024. As such, no 2023 comparatives are presented above.
Reconciliation between (provision for) benefit from income taxes |
Year ended December 31 (€, in millions) | 2025 | %1
Income before income taxes | 11,406.1 | 100.0
Income tax expense based on ASML’s domestic rate | (2,942.8) | 25.8
Foreign tax effects |  |
Other foreign jurisdictions |  |
Other | (117.7) | 1.0
Netherlands |  |
Nontaxable or nondeductible items |  |
Adjustments in respect of tax incentives | 1,055.8 | (9.3)
Other nontaxable or nondeductible items | (14.8) | 0.1
Other adjustments | 30.2 | (0.3)
Changes in the liability for unrecognized tax benefits | (24.1) | 0.2
Income tax expense / Effective tax rate | (2,013.4) | 17.7
1.As a percentage of income before income taxes. 2.T he ASU 2023-09 guidance became effective as of 2025. As such no 2024 and 2023 comparatives are presented above. Explanatory notes on the 2025 reconciling items appear below the table presenting the effective tax rates for 2024 and 2023. The following table is a reconciliation of the Dutch statutory rate of 25.8% to the Company’s effective rate for the years ended December 31, 2023 and 2024 in accordance with the guidance prior to the adoption of ASU 2023-09.
Year ended December 31 (€, in millions) | 2023 | %1 | 2024 | %1 |
Income before income taxes | 9,083.5 | 100.0% | 9,042.4 | 100.0% |
Income tax provision based on ASML’s domestic rate | (2,343.5) | 25.8% | (2,332.9) | 25.8% |
Effects of tax rates in foreign jurisdictions | 14.7 | (0.2)% | 26.6 | (0.3)% |
Adjustments in respect of tax exempt income | 1.4 | —% | 0.9 | —% |
Adjustments in respect of tax incentives | 941.9 | (10.4)% | 824.6 | (9.1)% |
Adjustments in respect of prior years’ current taxes | 113.1 | (1.2%) | (211.2) | 2.3% |
Adjustments in respect of prior years’ deferred taxes | (85.2) | 0.9% | 93.1 | (1.0)% |
Movements in the liability for unrecognized tax benefits | (55.0) | 0.6% | (66.8) | 0.7% |
Global Minimum Tax | — | —% | (2.5) | —% |
Change in valuation allowance | 3.0 | —% | (24.9) | 0.3% |
Equity method investments | (42.6) | 0.5% | (41.6) | 0.5% |
Effect of change in tax rates | 13.5 | (0.1)% | — | —% |
Other credits and non-taxable items | 2.9 | —% | 54.1 | (0.6)% |
Provision for income taxes | (1,435.8) | 15.8% | (1,680.6) | 18.6% |
1.As a percentage of income before income taxes. The individual elements in these tables are explained in more detail below. While the explanations are based on the captures of the 2025 table, they also reference the corresponding items from the 2024 and 2023 table for context.
Dislosure of income taxes paid | Income taxes paid 1
Jurisdiction / Year (€, in millions) | 2025
Domestic |
Netherlands | (1,152.7)
Foreign |
United States | (171.1)
South Korea | (89.3)
China | (98.0)
Rest of World | (110.3)
Total | (1,621.4)
1.The ASU 2023-09 guidance became effective as of 2025. As such no 2024 and 2023 comparatives are presented above.
Liability for unrecognized tax benefits and deferred tax position recorded on consolidated balance sheets | The liability for unrecognized tax benefits and related accrued interest and penalties and total deferred tax position recorded on the Consolidated balance sheets is as follows:
Year ended December 31 (€, in millions) | 2024 |  | 2025
Liability for unrecognized tax benefits | (253.1) |  | (174.5)
Deferred tax assets | 1,940.7 |  | 1,719.4
Deferred tax liabilities | (46.1) |  | (8.5)
Deferred and other tax assets (liabilities) | 1,641.5 |  | 1,536.4
Reconciliation of beginning and ending balance of liability for unrecognized tax benefits | The following table is a reconciliation of the beginning and ending balance of the liability for unrecognized tax benefits:
Year ended December 31 (€, in millions) | 2024 |  | 2025
Balance as at January 1 | (193.6) |  | (214.0)
Gross increases – tax positions in prior period | (39.7) |  | (25.9)
Gross decreases – tax positions in prior period | 11.0 |  | 62.2
Gross increases – tax positions in current period | (64.9) |  | (58.5)
Settlements | 69.9 |  | 60.3
Lapse of statute of limitations | 6.1 |  | 1.7
Effect of changes in exchange rates | (2.8) |  | 13.4
Total liability for unrecognized tax benefits | (214.0) |  | (160.8)
Balance of accrued interest and penalties | (39.1) |  | (13.7)
Total liabilities for unrecognized tax benefits including interest and penalties | (253.1) |  | (174.5)
Summary of income tax examinations | The years for which tax returns are still open for examination for respective jurisdictions are as follows:
Jurisdictions | Years
Netherlands | 2022 – 2025
US | 2018 – 2025
Taiwan | 2020 – 2025
South Korea | 2022 – 2025
China | 2015 – 2025
Composition of deferred tax assets and liabilities reconciled in consolidated balance sheets | The composition of total deferred tax assets and liabilities reconciled to the classification in the Consolidated balance sheets is:
Deferred taxes (€, in millions) | January 1, 2025 | Credits and other | Consolidated Statements of Operations | Effect of changes in exchange rates |  | December 31, 2025
Deferred tax assets: |  |  |  |  |  |
Capitalized R&D costs | 481.7 | — | (106.5) | (63.9) |  | 311.3
Goodwill | 79.8 | — | 5.3 | — |  | 85.1
R&D and other tax credit carry forwards | 266.6 | (9.7) | 85.4 | (30.2) |  | 312.1
Inventories | 95.5 |  | (23.4) | (2.1) |  | 70.0
Contract liabilities | 1,046.0 |  | 16.8 | (90.4) |  | 972.4
Accrued and other liabilities | 135.4 |  | (9.0) | (13.2) |  | 113.2
Operating loss carry forwards | 1.1 |  | 49.0 | 1.0 |  | 51.1
Property, plant and equipment | 11.4 |  | 2.7 | (0.2) |  | 13.9
Lease liabilities | 25.4 |  | (3.4) | (3.1) |  | 18.9
Other intangible assets | 107.0 | — | (15.3) | (7.0) |  | 84.7
Share-based payments | 30.0 | — | 6.3 | (3.5) |  | 32.8
Other temporary differences | 24.4 | — | 32.7 | 20.2 |  | 77.3
Total deferred tax assets, gross | 2,304.3 | (9.7) | 40.6 | (192.4) |  | 2,142.8
Valuation allowance 1 | (242.6) | — | (52.4) | 27.3 |  | (267.7)
Total deferred tax assets, net | 2,061.7 | (9.7) | (11.8) | (165.1) |  | 1,875.1
Deferred tax liabilities: |  |  |  |  |  |
Other intangible assets | (46.0) | — | 11.1 | 11.9 |  | (23.0)
Goodwill | (45.7) | — | (8.0) | — |  | (53.7)
Inventories | — | — | — | — |  | —
Right-of-use assets | (25.4) | — | 3.4 | 3.1 |  | (18.9)
Property, plant and equipment | (36.1) | — | 8.0 | 3.1 |  | (25.0)
Accrued and other liabilities | (0.3) | — | (27.4) | 0.6 |  | (27.1)
Contract liabilities | — | — | — | — |  | —
Long-term debt | (1.3) | — | 1.2 | — |  | (0.1)
Other temporary differences | (12.3) | — | 7.2 | (11.3) |  | (16.4)
Total deferred tax liabilities | (167.1) | — | (4.5) | 7.4 |  | (164.2)
Net deferred tax assets (liabilities) | 1,894.6 | (9.7) | (16.3) | (157.7) |  | 1,710.9
Classified as: |  |  |  |  |  |
Deferred tax assets – non-current | 1,940.7 |  |  |  |  | 1,719.4
Deferred tax liabilities – non-current | (46.1) |  |  |  |  | (8.5)
Net deferred tax assets (liabilities) | 1,894.6 |  |  |  |  | 1,710.9
1.The valuation allowance disclosed above relates to R&D and other tax credit carry forwards and operating loss carry forwards that may not be realized.
Deferred taxes (€, in millions) | January 1, 2024 | Credits and other | Consolidated Statements of Operations | Income tax recognized in Other Comprehensive Income | Effect of changes in exchange rates |  | December 31, 2024
Deferred tax assets: |  |  |  |  |  |  |
Capitalized R&D costs | 514.1 | — | (66.5) | — | 34.1 |  | 481.7
Goodwill | 65.0 |  | 14.8 | — | — |  | 79.8
R&D and other tax credit carry forwards | 217.8 | (9.7) | 45.4 | — | 13.1 |  | 266.6
Inventories | 61.4 | — | 31.6 | — | 2.5 |  | 95.5
Contract liabilities | 959.8 | — | 39.9 | — | 46.3 |  | 1,046.0
Accrued and other liabilities | 139.5 | — | (6.6) | — | 2.5 |  | 135.4
Operating loss carry forwards | 3.9 | — | (2.8) | — | — |  | 1.1
Property, plant and equipment | 29.2 | — | (16.2) | — | (1.6) |  | 11.4
Lease liabilities | 28.7 | — | (5.0) | — | 1.7 |  | 25.4
Other intangible assets | 119.3 | — | (12.3) | — | — |  | 107.0
Share-based payments | 16.8 | — | 6.9 | — | 6.3 |  | 30.0
Other temporary differences | 22.5 | — | 4.9 | 3.7 | (6.7) |  | 24.4
Total deferred tax assets, gross | 2,178.0 | (9.7) | 34.1 | 3.7 | 98.2 |  | 2,304.3
Valuation allowance 1 | (206.7) | — | (24.9) | — | (11.0) |  | (242.6)
Total deferred tax assets, net | 1,971.3 | (9.7) | 9.2 | 3.7 | 87.2 |  | 2,061.7
Deferred tax liabilities: |  |  |  |  |  |  |
Other intangible assets | (52.0) | — | 9.4 | — | (3.4) |  | (46.0)
Goodwill | (38.5) | — | (7.2) | — | — |  | (45.7)
Inventories | (3.8) |  | 3.7 | — | 0.1 |  | —
Right-of-use assets | (28.7) | — | 5.0 | — | (1.7) |  | (25.4)
Property, plant and equipment | (13.6) | — | (22.7) | — | 0.2 |  | (36.1)
Accrued and other liabilities | (0.5) |  | 0.2 | — | — |  | (0.3)
Contract liabilities | (80.0) | — | 80.0 | — | — |  | —
Long-term debt | (1.6) | — | 0.3 | — | — |  | (1.3)
Other temporary differences | (2.9) | — | (11.7) | — | 2.3 |  | (12.3)
Total deferred tax liabilities | (221.6) | — | 57.0 | — | (2.5) |  | (167.1)
Net deferred tax assets (liabilities) | 1,749.7 | (9.7) | 66.2 | 3.7 | 84.7 |  | 1,894.6
Classified as: |  |  |  |  |  |  |
Deferred tax assets – non-current | 1,872.3 |  |  |  |  |  | 1,940.7
Deferred tax liabilities – non-current | (122.6) |  |  |  |  |  | (46.1)
Net deferred tax assets (liabilities) | 1,749.7 |  |  |  |  |  | 1,894.6
1.The valuation allowance disclosed above relates to R&D and other tax credit carry forwards and operating loss carry forwards that may not be realized.

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12A -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12A Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 + Details
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- Definition Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-15 + Details
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