2021 Universal Registration Document

5 2021 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

CORPORATE INCOME TAX NOTE 6

Tax expense 6.1.

Financial year 2021

Financial year 2020

(in millions of euros)

Current tax Deferred tax

-80.8 -12.7 -93.5

-57.9

-2.5

TOTAL

-60.4

Current tax a. The Group determines its current tax expense by applying the tax laws in force in countries where its subsidiaries and associates conduct their business and generate taxable revenues. The tax laws applied are those enacted or substantively enacted at the end of the reporting period. Deferred tax b. Deferred tax is recognised on all temporary differences between the tax base and the carrying amount of assets and liabilities on consolidation. Deferred tax assets are only recognised if it is probable that they will be recovered as a result of taxable profit expected in future periods within a reasonable time frame.

They are reviewed at the end of each reporting period. Tax assets and liabilities are measured based on the tax rates enacted or substantively enacted applicable to the reporting period during which the asset will be realised or the liability settled. Their effect is recognised in profit or loss as Deferred tax unless it relates to items recorded under Other comprehensive income , in which case the effect is also included among gains and losses recognised directly in equity. Deferred tax assets and liabilities, regardless of their expiry date, are offset when: the Group has the legal right to settle current tax amounts on a p net basis; and the deferred tax assets and liabilities relate to the same tax p entity.

Reconciliation of statutory and effective tax expense 6.2.

Financial year 2021

Financial year 2020

(in millions of euros)

Net profit

193.5

118.9

Adjustment for: Net profit from associates p

1.8

2.3

Tax expense p

-93.5

-60.4

Profit before tax Statutory tax rate

285.2

177.1

28.41%

32.02%

Statutory tax expense Permanent differences

-81.0

-56.7 -7.2 -5.1 10.0 10.1 -1.1 -15.7

0.5

Change in uncapitalised loss carryforwards

-6.8

Impact of tax credits Tax rate differences

7.0

-2.9

Prior-year tax adjustments

1.1

CVAE (net of tax)

-9.7 -1.7

Other tax

5.4

ACTUAL TAX EXPENSE

-93.5

-60.4

Effective tax rate

32.77%

34.09%

The reconciliation between the statutory tax expense and the effective tax expense is conducted using the statutory tax rate in France for the Group’s parent company. This statutory tax rate consists of the 27.5% corporate tax rate plus the 0.91% Contribution Sociale de Solidarité des Sociétés (C3S) social security tax.

The Cotisation sur la Valeur Ajoutée des Entreprises (CVAE) – a tax on corporate value added, which is a component of the Contribution Économique Territoriale (CET) regional business tax in France – is recognised as part of the corporate income tax expense, as is the Imposta Regionale Attività Produttive (IRAP) regional production tax in Italy.

194

SOPRA STERIA UNIVERSAL REGISTRATION DOCUMENT 2021

Made with FlippingBook - Online catalogs