Founded in 1987, Huawei is a leading global provider of information and communications

(1,921)
(1,755)
8,827
9,122
(b) Deferred tax assets not recognised
Deferred tax assets were not recognised in relation to certain unused tax losses, deductible temporary differences 
and unused tax credits in accordance with the accounting policy set out in note 3(n).
As at December 31, 2020, deferred tax assets have not been recognised in respect of unused tax losses 
amounting to CNY32,068 million (2019: CNY16,065 million) and deductible temporary differences amounting to 
CNY155,083 million (2019: CNY134,955 million); additionally, unused tax credits relating to overseas withholding 
income tax and research and development expenditure totalling CNY1,739 million (2019: CNY3,099 million) have 
not been recognised as deferred tax assets.
As permitted by the relevant income tax laws in the PRC, a group entity chose to utilise overseas withholding tax 
credits from current and previous years against taxable income from its foreign operations in the current year, in 
priority to utilising unused tax losses from current and previous years. This resulted in a decrease in unrecognised 
overseas withholding tax credits as at December 31, 2020.

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Huawei Investment & Holding Co., Ltd.