|TRIVAGO N.V. filed this Form 20-F on 03/06/2018|
In 2013, an uncertain tax position was provided for related to the deductibility of certain compensation payments in 2010 and 2011. In 2015, a tax audit was finalized for the years 2009 through to 2012. This resulted in a full release of the uncertain tax position. There are no uncertain tax positions provided for as of December 31, 2016 or 2017.
The Company is subject to audit by federal, state, local and foreign income tax authorities. As of December 31, 2017, for trivago and its subsidiaries, statute of limitations for tax years 2013 through 2017 remain open to examination by German tax authorities.
At December 31, 2017 there are no tax returns for trivago or subsidiaries under audit.
Deferred income taxes
At December 31, 2016 and 2017, the significant components of our deferred tax assets and deferred tax liabilities were as follows:
At December 31, 2017, we had net operating loss carryforwards (“NOLs”) for a tax-effected amount of approximately €2.5 million. The tax-effected NOL carryforwards decreased by €1.1 million from the amount recorded at December 31, 2016 primarily due to utilization of pre-tax losses at the level of the trivago N.V.
trivago N.V. is a Dutch listed entity, however has its tax residency in Germany. In 2017, trivago N.V. and trivago GmbH merged for tax purposes. This merger enables trivago N.V. to offset its NOLs with any future taxable profits of trivago GmbH. As a result, the €3.2 million previously unrecognized losses of trivago N.V. have been fully recognized in FY 2017.
Of this €3.2 million, €2.5 million of NOLs have not been utilized at December 31, 2017. If not utilized, the tax-effected NOL carryforwards of €2.5 million may be carried forward indefinitely.
The tax-effected valuation allowance decreased by €3.5 million from the amount recorded at December 31, 2016. Of this €3.5 million decrease in tax-effected valuation allowance, €3.2 million relates to the recognition of previously unrecognized losses at the trivago N.V. level, and €0.3 million relates to the utilization of previously unrecognized losses at the level of Base7 S.à.r.l., a Swiss subsidiary.