TELEPERFORMANCE_Registration_document_2017

PARENT COMPANY FINANCIAL STATEMENTS

8

8.4 Notes to the parent company financial statements

Note 18

Income taxes

NOTE 18.1 French tax Group The companies in the 2017 French tax Group are as follows:

With effect from Januaryb1 st , 2013, the tax savings for the Group resulting from the utilization of tax losses of members under the French tax Group mechanism are immediately transferred by Teleperformance to the relevant loss-making subsidiaries. Prior tax savings outstanding of €43.9bmillion (recognized as a liability * ) will also be transferred back in the event of a subsidiary exiting the tax Group or utilizing the tax losses itself. * See note 11, foot-note (3) including income taxes saved on subsidiaries’ tax losses utilized.

Teleperformance;

■

■ Teleperformance France; ■ Teleperformance emea;

■ Teleperformance intermédiation.

NOTE 18.2 Analysis of 2017 income tax expense

Income taxes Restatements

Other items (dividend taxes, tax assessments)

Theoretical expense

Fiscal adjustments

Effect of tax Group

(in thousands of euros)

Pre-tax income

Actual expense Net income

Profit on ordinary activities Standard rate (34.43%) ■

95,439 119,493 -24,054

41,120 41,120

-12,141 -12,141

-1,309 -1,309

-3,402 -3,402

24,267 24,267

71,170 95,224 -24,054

Long-term rate (0%)

0

b

b

b

0

■

Exceptional result

322 456 -134

152 152

0

0

0

152 152

171 305 -134

Standard rate (34.43%) Long-term rate (0%)

b b

b b

b b

■

b

0

■

TOTAL

95,761

41,272

-12,141

-1,309

-3,402

24,420

71,341

The French Group tax result showed a profit of €51.7bmillion in 2017, before offsetting tax losses brought forward of €2.8bmillion. At Decemberb31 st , 2017, there remain no more tax losses available to offset future French Group taxable income.

The 2017b tax charge was €24.4b million, compared with €19.3bmillion in 2016.

NOTE 18.3 Unrecognized deferred tax assets and liabilities at December 31 st , 2017

At beginning of year

Change

At end of year

TYPE (in thousands of euros)

Asset

Liability

Asset

Liability

Asset

Liability

CHANGES IN UNRECOGNIZED DEFERRED TAX ASSETS AND LIABILITIES I.bCertain or potential timing differencesb 1 – Items not currently deductible b

b b b b b b b b

b b

b b

b b

b b b b b b b b

1.1 – Deductible in the following year

b

Unrealized exchange gains

1,783

807

1,783

807

■

■ Provisions for losses on derivative financial instruments

b

506 426

b

506 426

Other

1,278

1,278

■

1.2 – Deductible in subsequent years

b

b

b

b

Retirement benefits

495

575

495

575

■

2 – Income not currently taxed

b b

b

b

b b

Unrealized exchange losses

1,243 1,243

1,243 3,557

372

372 372

■

TOTAL

3,556

3,928 2,314

NET CHANGE IN UNRECOGNIZED DEFERRED TAX ASSETS, NET OF LIABILITIES b

-371 b

b b

b b b b

II. Other potential deductions 1 – Tax losses carried forward

b

b b b

b b b

b

0

2,831

2,831

III. Tax group effect

b b

b

b b

1 – Tax savings to be transferred back to subsidiaries

7,638

7,638

14,009

14,009

228

Teleperformance bb - bb Registration documentbb 2017