technicolor - 2020 Universal Registration Document

FINANCIAL STATEMENTS NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS Note 5 - Income tax

Income tax

NOTE 5

Technicolor SA is the head of the French tax consolidation group, which members of the tax consolidation, the amount of tax they would have includes 14 companies. As a result, Technicolor SA is solely liable paid to the tax authorities if they had been taxed separately.

for corporate taxes and additional contributions due on the Group’s overall results. Technicolor SA receives from subsidiaries that are

The Company has indefinitely deferred losses estimated at €1.9 billion at December 31, 2020, mainly related to the Cathode Ray Tubes business sold in 2005.

Breakdown of booked income tax

5.1

2020

2019

(in million euros)

Income tax booked by French subsidiaries and passed on to Technicolor SA (1)

2 4

(11)

Tax consolidated research tax credit Tax consolidated audiovisual tax credit Tax consolidated international tax credit

5 2

1 - - -

- - 1

Provision for income tax expense under tax consolidation

Prior Year Adjustment of income tax expense under tax consolidation

Unused foreign tax credits

(1) (5)

(1) (7)

Other (2)

TOTAL INCOME TAX (11) As part of the French tax consolidation, Technicolor SA gets a tax income from consolidated French subsidiaries. The 2020 tax revenue is mainly related to Technicolor (1) 1

Trademark Management SAS (€0.9 million) and RCA Trademark Management SAS (€0.7 million). Mainly includes Research Tax Credits and Audiovisual Tax Credits to be refunded to subsidiaries. (2)

For the 2020 financial year, as the result of the tax consolidation was in deficit, no tax has been recorded. In the absence of tax consolidation, the Company would only show some unused tax credits for €(1) million. Variation of deferred or latent tax bases 5.2 Temporarily non-deductible expenses related to Technicolor SA are the following:

December 31, 2019

Variation December 31, 2020

(in million euros)

6

To be deducted the following year • Paid vacations

1

-

1 1

Provisions for risks

16

(15)

Other

1

1

2

To be deducted at a later date • Provisions for retirement Depreciation on current accounts

3 3

- 1 -

3 4

Provisions for risks

12

12 25

Other

11

14

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020 289