Euronext - 2019 Universal Registration Document

Financial Statements 8

Consolidated Statement of Changes in Equity

NOTE 14 RESULTS FROM EQUITY INVESTMENTS

Year ended 31 December 2019 31 December 2018

In thousands of euros

Dividend income

7,270

5,984

TOTAL

7,270

5,984

In 2019 and 2018, dividend income relates to dividends received from the Group’s non-current equity investments at fair value through other comprehensive income Euroclear S.A. and Sicovam Holding SAS (see Note 20).

NOTE 15 INCOME TAX EXPENSE

2019

2018

In thousands of euros

Current tax expense

(106,513)

(91,974)

Deferred tax expense

6,219

(2,110)

(94,084)

TOTAL

(100,294)

The actual tax charge incurred on the Group’s profit before income tax differs from the theoretical amount that would arise using the weighted average tax rates applicable to profit before income tax of the consolidated entities as follows:

RECONCILIATION OF EFFECTIVE TAX CHARGE

2019

2018

In thousands of euros

Profit before income tax

325,572

311,712

Income tax calculated at domestic tax rates applicable to profits in the respective countries

(92,492)

(93,854)

Tax effects of: Non-deductible expenses (a)

(8,847)

(3,546)

205

2,520

Other tax exempt income (b)

275

3,548

Over provided in prior years (c)

Other (d)

565

(2,752)

(94,084)

TOTAL

(100,294)

(a) In 2019, non-deductible expenses mainly relate to non-deductible M&A expenses and increased redemption liability. (b) In 2018 other tax exempt income mainly relates to dividends received and revaluation of Sicovam Holding SAS.

(c) In 2018 “over provided in prior years” were positively impacted by the release of €4.0 million tax provisions recognised in 2014, as a result of the lapse of statute of limitations. (d) As from 2014, the Company applies the statutory tax rates without (temporary) surcharges (in Portugal and France) to the profit before income tax to calculate tax at domestic rates. The (temporary) surcharges have been included in the line “Other”.

The Netherlands, France and Belgium have changed their future tax rates (see Note 19). The recalculation of deferred tax resulting from these changes had a positive impact of €1.5 million, which is included in the line “Other”.

The effective tax rate increased from 30.2% for the year ended 31 December 2018 to 30.8% for the year ended 31 December 2019. These rates are practically in line with the normalized tax rate.

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2019 UNIVERSAL REGISTRATION DOCUMENT