Deferred income taxes are calculated in full on temporary differences under the liability method using the tax rate of each country.

The evolution of deferred tax assets and liabilities during the year is as follows:

	Fixed assets	Inventories	Intangible assets and other	Total
At the beginning of the year	575,667	43,532	114,542	733,741
Translation differences	41	113	397	551
Increase due to business combinations ^(*)	4,175	7,563	5,498	17,236
Charged to other comprehensive income	-	-	138	138
Income statement charge	38,991	63,127	39,627	141,745
At December 31, 2023	618,874	114,335	160,202	893,411

	Fixed assets		Inventories	Intangible assets and other	Total
At the beginning of the year	669,830		27,508	104,346	801,684
Translation differences	(64	)	15	600	551
Charged to other comprehensive income	-		-	1,719	1,719
Income statement (credit) / charge	(94,099	)	16,009	7,877	(70,213	)
At December 31, 2022	575,667		43,532	114,542	733,741

	Provisions and allowances		Inventories		Tax losses		Other		Total
At the beginning of the year	(25,817	)	(180,152	)	(310,589	)	(156,984	)	(673,542	)
Translation differences	(6	)	(24	)	1		(611	)	(640	)
Increase due to business combinations (*)	(1,374	)	(223	)	(1,875	)	(35,941	)	(39,413	)
Charged to other comprehensive income	-		-		-		(2,342	)	(2,342	)
Income statement (credit) / charge	(4,314	)	(18,620	)	(322,431	)	9,881		(335,484	)
At December 31, 2023	(31,511	)	(199,019	)	(634,894	)	(185,997	)	(1,051,421	)

	Provisions and allowances		Inventories		Tax losses		Other		Total
At the beginning of the year	(25,083	)	(85,037	)	(485,763	)	(176,627	)	(772,510	)
Translation differences	(345	)	114		747		(245	)	271
Charged to other comprehensive income	-		-		-		954		954
Income statement charge / (credit)	(389	)	(95,229	)	174,427		18,934		97,743
At December 31, 2022	(25,817	)	(180,152	)	(310,589	)	(156,984	)	(673,542	)

(*) Related to the GPC, Isoplus anticorrosion coating division and Mattr’s pipe coating business unit acquisitions. For more information see note 34.

Deferred tax assets related to tax losses of Tenaris subsidiaries are recognized to the extent it is probable that future taxable profits will be available, against which such losses can be utilized. The utilization of such tax losses may also be restricted by the nature of the profit, expiration dates and / or potential limitations on their yearly consumption. In determining the amount of deferred taxes to be recognized. Tenaris considered existing evidence, both positive and negative, including the historical taxable profits and the projections of future taxable profits prepared by management to assess the probability that the deferred tax assets will be realized. Management applies significant judgment in assessing the likelihood that future taxable profits will be available.

Deferred tax assets related to tax losses as of the end of 2023 include $550.3 million recognized in its Luxembourg subsidiary mainly due to impairment charges over certain undertakings in the past years. Under the Luxembourg tax law, tax losses generated before 2017 can be carried forward indefinitely and are not subject to any yearly consumption limitation. Losses incurred as from 2017 may be carried forward for a maximum of 17 years.

Tenaris has concluded as of end 2023 that it is probable that sufficient future taxable profits will be generated by business activities to be carried out by its Luxembourg subsidiary, against which the above-mentioned tax losses could be utilized prior to their expiration.

Deferred tax assets related to tax losses also include $77.9 million related to U.S. subsidiaries mainly due to the recognition of accelerated fiscal depreciations, as well as the amounts related to the acquisition of IPSCO in 2020. Tenaris has concluded that these deferred tax assets will be recoverable based on the business plans and budgets.

Approximately 99% of the recognized tax losses have an expiration date in more than 5 years or do not expire.

As of December 31, 2023, the net unrecognized deferred tax assets amounted to $3,130.0 million. Approximately 99% of the unrecognized tax losses have an expiration date in more than 5 years or do not expire.

The estimated recovery analysis of deferred tax assets and settlement of deferred tax liabilities, which takes into consideration management assumptions and estimates, is as follows:

Deferred income tax assets and liabilities are offset when (1) there is a legally enforceable right to set-off current tax assets against current tax liabilities and (2) when the deferred income taxes relate to the same fiscal authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. The following amounts, determined after appropriate set-off, are shown in the Consolidated Statement of Financial Position:

The movement in the net deferred income tax (asset) / liability account is as follows:

(*) Related to the GPC, Isoplus anticorrosion coating division and Mattr’s pipe coating business unit acquisitions. For more information see note 34.