BIC - 2019 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

NOTE 7

INCOME TAX

Accounting policies Income tax expense represents the sum of the tax currently payable and deferred tax. ●

The tax currently payable is based on taxable profit for the year. Taxable income differs from income as published in the income ● statement because it excludes items of income or expenses that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. Liability for current tax is calculated using tax rates that have been enacted as of the balance sheet date.

7-1

Income tax expense

Deferred tax: (5,987)

4,248 Deferred tax

32,887 France

21,049 France

60,287 Foreign

51,103 Foreign

2018

2019

Income tax expense Total: 88,237

Income tax expense Total: 75,350

The normal income tax rate in France is 34.43% (including social contributions) for the fiscal year 2019, as for 2018. Taxation for other jurisdictions is calculated at the rates prevailing in the respective countries. The Group uses the French tax rate as the theoretical base for the reconciliation between the theoretical income tax expense and the

effective income tax expense. Thus one of the main elements of reconciliation is the effect of differences in tax rates. As of December 31, 2019, the main contributors are the U.S., United Kingdom, Greece, Mexico, Spain and Slovakia. (As of December 31, 2018, the main contributors were the U.S., United Kingdom, Spain and Mexico.)

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• BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT •