Analysis of income tax expense
| (in millions of euros) | 2019 | 2018 |
|---|---|---|
(in millions of euros) Current income tax expense for the period | 2019 (336) | 2018 (292) |
(in millions of euros) Current tax income for previous years | 2019 11 | 2018 2 |
(in millions of euros) Total tax income/(expense) | 2019 (325) | 2018 (290) |
(in millions of euros) Deferred tax income/(expense) | 2019 27 | 2018 (27) |
(in millions of euros) Changes in unrecognized deferred tax assets | 2019 (7) | 2018 32 |
(in millions of euros) Total net deferred tax income/(expense) | 2019 20 | 2018 5 |
(in millions of euros) Income taxes | 2019 (305) | 2018 (285) |
Effective tax rate
The effective tax rate is obtained as follows:
| (in millions of euros) | 2019 | 2018 | |
|---|---|---|---|
(in millions of euros) Pre-tax income of consolidated companies |
| 2019 1,154 | 2018 1,219 |
(in millions of euros) Impairment losses |
| 2019 27 | 2018 14 |
(in millions of euros) Revaluation of earn-out payments |
| 2019 22 | 2018 13 |
(in millions of euros) (Gains)/losses on disposals |
| 2019 16 | 2018 18 |
(in millions of euros) Restated pre-tax income of consolidated companies | A | 2019 1,219 | 2018 1,264 |
(in millions of euros) French tax rate applicable to the parent company |
| 2019 34.43% | 2018 34.43% |
(in millions of euros) Expected tax expense on pre-tax income of consolidated companies |
| 2019 (420) | 2018 (435) |
(in millions of euros) Impact of: |
| 2019
| 2018
|
(in millions of euros) • the difference between the French tax rate and foreign tax rates |
| 2019 184 | 2018 161 |
(in millions of euros) • changes in unrecognized deferred tax assets |
| 2019 (7) | 2018 32 |
(in millions of euros) • other impacts(1) |
| 2019 (62) | 2018 (43) |
(in millions of euros) Income tax in the income statement |
| 2019 (305) | 2018 (285) |
(in millions of euros) • Current tax on reserves accumulated abroad |
| 2019 - | 2018 (18) |
(in millions of euros) Income tax in the restated income statement | B | 2019 (305) | 2018 (303) |
(in millions of euros) Effective tax rate | B/A | 2019 25.0% | 2018 24.0% |
(1) Other impacts mainly include those related to permanent differences, income taxed at reduced rates, adjustments to previous financial years.
