Year ended Dec 2025 $’000 Year ended Dec 2024 $’000 Under/(over) provision in prior years 223 (3,413) Utilisation of previously unrecognised tax losses – (3,233) Recognition of deferred tax asset for carried forward tax losses – (10,428) Foreign exchange on New Zealand tax loss (235) – Difference in overseas tax rates (95) (199) Income tax expense 8,493 40,897 1 For the year ended 31 December 2025 and the year ended 31 December 2024, an adjustment to tax expense was made for foreign income tax offsets unable to be used. As at 31 Dec 2025 $’000 As at 31 Dec 2024 $’000 Current tax assets/(liabilities) Opening balance (42,866) (37,119) Income tax (8,299) (52,523) Withholding tax credits 3,057 6,468 (Over)/under provision in prior years (232) 3,045 Tax paid during the year 54,147 37,221 Other – 42 Closing balance 5,807 (42,866) As at 31 Dec 2025 $’000 As at 31 Dec 2024 $’000 Amounts credited directly to equity Deferred tax assets (16) – As at 31 Dec 2025 $’000 As at 31 Dec 2024 $’000 Deferred tax asset Deferred tax asset comprises temporary differences attributable to: Amounts recognised in profit or loss: Patents 44 66 Capital raising costs 17 73 Employee benefits 198 163 Unrealised foreign exchange 581 (408) Tax losses (a) 9,693 10,428 Other temporary differences 48 26 Deferred tax asset 10,581 10,348 Movements: Opening balance 10,348 771 Credited to profit or loss 207 9,211 Credited to equity 16 – Over provision in prior years 10 366 Closing balance 10,581 10,348 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED 8. INCOME TAX (CONTINUED) Neuren Pharmaceuticals Limited Annual Report 2025 44
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