Sopra Steria - 2020 Universal registration document

5 2020 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

CORPORATE INCOME TAX NOTE 6

Tax expense 6.1.

Financial year 2020

Financial year 2019

26 5244276: 7/ .<97:

Current tax Deferred tax

-57.9

-78.6

-2.5

-8.8

(#(

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 2020

Financial year 2019

26 5244276: 7/ .<97:

Net profit

118.9

173.1

Adjustment for: Net profit from associates p

2.3

1.8

Tax expense p

-60.4

-87.3

Profit before tax Statutory tax rate

177.1

258.7

32.02%

34.43%

Statutory tax expense Permanent differences

-56.7

-89.1

-7.2 -5.1

-9.3 -0.2

Impact of non-activated losses for the financial year Use/activation of previously uncapitalised loss carryforwards

0.0

1.6 9.9

Impact of tax credits Tax rate differences

10.0 10.1 -1.1 -15.7

14.1

Prior-year tax adjustments

3.2

CVAE (net of tax)

-16.4

Other tax

5.4

-1.1

() ( , ,$ "'

Effective tax rate

34.09%

33.77%

Contribution Sociale de Solidarité des Sociétés (C3S) social security

The reconciliation between the statutory tax expense and the effective tax expense is conducted using the statutory tax rate in tax. France for the Group’s parent company. This statutory tax rate consists of the 31.0% corporate tax rate plus the 1.02%

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

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SOPRA STERIA UNIVERSAL REGISTRATION DOCUMENT 2020