SOMFY // 2022 Annual Report

05 CONSOLIDATED FINANCIAL STATEMENTS

The results taxed at a reduced rate in France involve patent royalties, which were taxed at 10.33%. In France, the ordinary taxation rate fell from 28.41% in 2021 to 25.83% in 2022, in line with the gradual reduction in the normal rate of corporate income tax. The main countries that contributed to the difference in the tax rate were Tunisia (€8.1 million), other European countries (€2.2 million), Poland (€2.1 million),Middle Eastern countries (€1.1 million), and the United States (€0.7 million). Tax credits mainly comprise tax credits related to investments of -€4.4 million in 2022, compared with -€2.2 million in 2021. They were also increased by €2.9 million in incentive measures in Italy at 31 December 2021. In 2022, the “ Other taxes and miscellaneous ” item notably included €2.7 million in respect of the CVAE corporate value-added contribution. In2021, they notably included €2.8 million in respect of the CVAE contribution,less €0.8 million relating to tax claims. Current tax assets and liabilities The change in tax liabilities and receivables was due to the effect of tax instalments and to the change in tax expense from one financial year to another. Retained losses capitalised or used Deferred tax relating to tax losses was not capitalised where it was deemed unlikely that future taxable profits will be sufficient to absorb unused previous tax losses. The total amount of these losses was €40 million at the end of 2022, based on the standard tax rate, compared with €41.6 million at the end of 2021. No significant deferred tax assets wererecognised in 2022 in relation to tax losses arising duringthe financial year or in previous years. Global minimum tax In response to concerns over the unequal allocation of profits and tax contributions by multinational corporations, various global agreements have been signed, including an agreement signed by more than 135 countries to introduce a global minimum tax rate of 15%. The Organisation for Economic Co-operation and Development (OECD) published a draft legislative framework in December 2021 followed by detailed guidance in March 2022 for use by countries that are signatories to the agreement in amending their local tax laws. Once changes to tax legislation in any country in which the Group operates have been enacted or substantively enacted, the Group may become subject to additional tax. At the publication date of the financial statements, no country in which the Group operates had enacted or substantively enacted tax legislation in relation to this additional tax. The Group could potentially become subject to additional tax in countries where the effective tax rate is currently below 15%. Management is closely monitoring the legislative process in each country in which the Group operates. At 31 December 2022, the Group did not have sufficient information to quantify the potential impact.

DEFERRED TAX RECOGNISED IN ITEMS OF OTHER COMPREHENSIVE INCOME NOTE 11.2

€ thousands

31/12/22

31/12/21

Deferred tax assets – actuarial gains and losses on employee benefits

1,695

2,482

-

- -

– foreign currency hedges – raw material hedges Deferred tax liabilities – foreign currency hedges – raw material hedges

39

57

60

-

121

NET DEFERRED TAX

1,677

2,301

128

SOMFY – ANNUAL REPORT 2022