In its quarterly interim GAAP balance sheet, the insurer calculated a tax provision for the year-to-date profit. No temporary difference exists. The tax year follows the calendar year, and the solvency tax base is the same as the GAAP tax base. The insurer is taxed based on its annual income, which encompasses the activity of an annual reporting period (all quarters of a year) and not the activity of one specific quarter. Article 207 Adjustment for the loss-absorbing capacity of deferred taxes of the delegated a Regulation (EU) 2015/35 states that “the adjustment for the loss-absorbing capacity of deferred taxes shall be equal to the change in the value of deferred taxes of insurance and reinsurance undertakings that would result from an instantaneous loss of an amount that is equal to the sum of the BSCR, the loss-absorbing capacity of technical provisions and the capital requirement for operational risk. An instantaneous loss on the first day of the following quarter, except the 4th quarter, would create a negative taxable income, the tax provision would be zero and a carryforward of unused tax losses. Can the interim tax provision be included in the loss absorbing capacity of deferred taxes?