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	618,874		114,335		160,202		893,411
Translation differences	(194	)	(72	)	(174	)	(440	)
Changes due to business combinations (*)	1,223		-		2,033		3,256
Charged to other comprehensive income	-		-		(904	)	(904	)
Income statement credit	(51,265	)	(39,033	)	(46,940	)	(137,238	)
At December 31, 2024	568,638		75,230		114,217		758,085

	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

(*) For the year 2024, related to Mattr’s pipe coating business unit acquisition. For more information see note 34.

(**) For the year 2023, related to the GPC, Isoplus anticorrosion coating division and Mattr’s pipe coating business unit acquisitions.

	Provisions and allowances		Inventories		Tax losses		Other		Total
At the beginning of the year	31,511		199,019		634,894		185,997		1,051,421
Translation differences	(22	)	(277	)	(76	)	(829	)	(1,204	)
Changes due to business combinations (*)	-		88		(414	)	1,821		1,495
Charged to other comprehensive income	-		-		(2,006	)	885		(1,121	)
Income statement credit / (charge)	24,436		(44,915	)	82,400		(27,070	)	34,851
At December 31, 2024	55,925		153,915		714,798		160,804		1,085,442

	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

(*) For the year 2024, related to Mattr’s pipe coating business unit acquisition. For more information see note 34.

(**) For the year 2023, related to the GPC, Isoplus anticorrosion coating division and Mattr’s pipe coating business unit acquisitions.

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 2024 and 2023 include $623.8 million and $550.3 million respectively, 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 2024 and 2023 that it is probable that sufficient future taxable profits will be generated by business carried out by its Luxembourg subsidiary which has expanded its activities including sales, distribution, logistics and marketing of steel products and other related services, against which the above-mentioned tax losses could be utilized prior to their expiration.

Deferred tax assets related to tax losses as of the end of 2024 and 2023 also include $79.4 million and $77.9 million respectively, from U.S. subsidiaries mainly 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 97% of the recognized tax losses have an expiration date in more than 5 years or do not expire.

As of December 31, 2024, the unrecognized deferred tax assets originating in tax losses or tax credits amounted to $2,683.5 million.

Approximately 98% of the unrecognized deferred tax assets 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:

	Year ended December 31,
	2024	2023
Deferred tax assets	831,298	789,615
Deferred tax liabilities	503,941	631,605
	327,357	158,010

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

	Year ended December 31,
	2024		2023
At the beginning of the year	158,010		(60,199	)
Translation differences	(764	)	89
Changes due to business combinations ^(*)	(1,761	)	22,177
Charged to other comprehensive income	(217	)	2,204
Income statement credit	172,089		193,739
At the end of the year	327,357		158,010

^(*) For the year 2024, related to Mattr’s pipe coating business unit acquisitions. For more information see note 34.

For the year 2023, related to the GPC, Isoplus anticorrosion coating division and Mattr’s pipe coating business unit acquisitions.