Saint-Gobain // Universal Registration Document 2021

8

Financial and accounting information 2021 Consolidated Financial Statements

Tax NOTE 12

Income taxes 12.1 Current income tax is the estimated amount of tax payable in respect of income for a given period, calculated by reference to the tax rates that have been enacted or substantively enacted at the end of the reporting period, plus any adjustments to current taxes recorded in previous financial periods.

Income tax expense breaks down as follows:

2021 (843) (104) (739)

2020 (519)

(in EUR millions)

CURRENT TAXES

France

(67)

Outside France

(452)

DEFERRED TAXES

(76) (13) (63)

(7)

France

(72)

Outside France

65

TOTAL INCOME TAX EXPENSE

(919)

(526)

Theoretical tax expense was reconciled with current tax expense using a tax rate of 28.41% in 2021 and 32.02% in 2020, and can be analyzed as follows:

2021 2,614

2020

(in EUR millions) Net income

489

Less: Share in net income of equity-accounted companies

56

15

Income taxes

(919) 3,477 28.41% (988)

(526) 1,000

PRE-TAX INCOME OF CONSOLIDATED COMPANIES

French tax rate

32.02%

Theoretical tax expense at French tax rate

(320)

Impact of different tax rates

117

73

Asset impairment, capital gains and losses on asset disposals

(34)

(129) (75) (27)

Deferred tax assets not recognized and provisions for deferred tax assets

75

Liability method

(106)

Research tax credit and value-added contribution for businesses (CVAE)

(6)

(16)

Deduction of interest not deductible in France

15

(3)

Costs related to dividends

(39)

(54)

Other taxes and changes in provisions TOTAL INCOME TAX EXPENSE

47

25

(919)

(526)

The increase in future tax rates for the United Kingdom from 19% to 25% (applicable as of April 1, 2023) led the Group to recognize a tax expense of €106 million for 2021 in connection with the liability method. The contribution of countries with low tax rates explains the impact of the different tax rates applicable outside France. The main contributors are the United States, Sweden, Norway, Poland, Switzerland, the Czech Republic, Ireland, the United Kingdom, China and India.

asset is realized or the liability settled, based on the tax laws that have been enacted or substantively enacted at the end of the reporting period. No deferred tax liability is recognized in respect of undistributed earnings of subsidiaries that are not intended to be distributed. For investments in subsidiaries, deferred tax is recognized on the difference between the consolidated carrying amount of the investments and their tax basis when it is probable that the temporary difference will reverse in the foreseeable future. Deferred taxes are recognized as income or expense in the income statement, unless they relate to items that are recognized directly in equity, in which case they are also recognized in equity. Income tax resulting from changes in tax rates is recognized in income, except where it relates to items initially recognized in equity.

12.2

Deferred tax

Deferred tax assets and liabilities are recorded using the balance sheet method for temporary differences between the carrying amount of assets and liabilities and their tax basis. Deferred tax assets and liabilities are measured at the tax rates expected to apply to the period when the

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