Company: PLSAY
Filing Date: 2025-04-23
Form Type: 20-F/A
Source: 0001884082-25-000005
Chunk: 186

Company: Polestar Automotive Holding UK PLC
Filing Date: 2025-04-23
Form: 20-F/A
Chunk 186
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 146,459 |     |           |   215,925 |
| 2029 onwards                             |     |                    | 2,950,102 |     |           | 1,369,144 |
| Tax loss carryforwards as of December 31 |     |                  $ | 3,376,496 |     |         $ | 2,146,670 |

The increase in tax losses available for carryforward are mainly attributable to losses incurred as a consequence of the Group scaling its Research and development expense to meet the demands of the growing business. Further, for the year ended December 31, 2022, tax loss carryforwards and other temporary differences of $ 115,423were attributable to the Chengdu facility which was held for sale. Refer to Note 28 - Assets held for sale for further details.

As of December 31, 2023, the Group had unused tax losses of $ 3,376,496, for which no deferred tax asset has been recognized due to unpredictability of future profit streams. As of December 31, 2023 and 2022, tax losses in Sweden of $ 2,814,699and $1,573,890, respectively, have an indefinite carryforward period. As of December 31, 2023 and 2022, tax losses in China of $ 545,618and $ 561,601, respectively, have a five-year carryforward period. In addition to the losses referred to above, the Group also had Deferred tax assets arising on other temporary differences of $ 423,744and $ 251,566as of December 31, 2023 and 2022, respectively, where no Deferred tax assets have been recognized.

The Pillar Two legislation has been enacted or substantively enacted in several of the jurisdictions in which the Polestar Group operates. The legislation will be effective for the Group’s financial year beginning 1 January 2024. The Group is in scope of the enacted or substantively enacted legislation and has performed an assessment of the Group’s potential exposure to Pillar Two income taxes for the current year ending on 31 December 2023, had the legislation been effective for this year.

The assessment of the potential exposure to Pillar Two income taxes is based on the Group’s consolidated financial statements for the current year. Based on the assessment performed, the transitional safe harbor relief applies for most jurisdictions and in the few jurisdictions where this relief does not apply, the full ETR calculation results