The amount of deferred tax assets that rely on future profitability may be reduced by the amount of the associated deferred tax liabilities of the institution, provided the following conditions are met:
the entity has a legally enforceable right under applicable national law to set off those current tax assets against current tax liabilities;
The amount of associated deferred tax liabilities referred to in paragraph 4 shall be allocated between the following:
deferred tax assets that rely on future profitability and arise from temporary differences that are not deducted in accordance with Article 48(1);
Institutions shall allocate the associated deferred tax liabilities according to the proportion of deferred tax assets that rely on future profitability that the items referred to in points (a) and (b) represent.