According to art. 469(1c) CRR, the deferred tax assets that arise from temporary differences can be deducted in a transitional manner using the percentages specified in art. 478(2) CRR. The residual amount that is not deducted, is to be risk weighted at 0% (art. 472(5) CRR). Whereas for other regulatory deductions there is a specific row in template C 05.01 that is used to indicate the transitional amounts, it is not clear where in this template the transitional amounts for deferred tax assets that arise from temporary differences must be indicated. For row 380 is it specifically indicated that it holds the transitional arrangement referred to in art. 470 CRR, while rows 390-420 hold the transitional arrangements related to own funds instruments of financial sector entities where the institution has a significant investments. Row 170 only concerns deferred tax assets that rely on future profitability and do not arise from temporary differences.

In template C 05.01, the transitional arrangements related to the regulatory deductions must be indicated.

In template C 05.01 of Annex I to Regulation (EU) No 680/2014 (ITS on Supervisory Reporting), a row dedicated to the reporting of that part of deferred tax assets that rely in future profitability and arise from temporary differences which exceeds the 10% threshold in article 470 (2) lit. (a) of Regulation (EU) No 575/2013 (CRR) is missing.

A new row r385 will be inserted in template C 05.01 in the next available version of the ITS on Supervisory Reporting so that the effect of the transitional adjustments of Articles 469(1) lit. c and d, 478 and 472(5) CRR on these DTAs can be reported.

As an interim solution, whilst an amended version of the ITS on Supervisory Reporting is not implemented, the effect of the transitional arrangements related to that part of the DTAs that rely on future profitability, arise from temporary differences and exceed the 10%-threshold of Article 470 (2) lit. a CRR shall be reported in row 380 of template C 05.01.

Row 380 of C 05.01 is originally dedicated to the reporting of amounts exceeding the 15%-threshold of Article 470 (2) CRR.