PSA_GROUP_REGISTRATION_DOCUMENT_2017

CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2017 Notes to the consolidated financial Statements at December 2017

Current taxes A. Current taxes represent the amounts paid or currently due to the tax authorities for the year, calculated in accordance with the tax regulations and rates in effect in the various countries. In France, Peugeot S.A. and its French subsidiaries that are at least 95%-owned maintained their election to determine French income taxes on a consolidated basis in accordance with Article 223 A of the French Tax Code. The Group has also elected to file a consolidated tax return in other countries that have Group relief schemes. When withholding taxes on management fees are used by the recipients to pay tax, income is recognised appropriately in current taxes. Tax rate in France B. The French statutory income tax rate is 34.43%, including supplementary contributions.

The Amending Finance Act of 29 December 2013 raising this tax rate to 38% applies up to December 2015. The cap on offsetting tax loss carryforwards against taxable profit for the year is maintained at 50% in 2017. The 2017 Finance Act changed the income tax rate in France to 28.92% from 2020, including the additional contribution. From 2022, this rate will be reduced to 25.83%. The deferred tax assets and liabilities have been remeasured to reflect the new rates. Impairment losses on deferred taxes C. Deferred taxes are determined as described above. Deferred taxes were tested for impairment on the basis of four-year tax estimates, consistent with the impairment testing of the Automotive Division CGU. Tax loss carryforwards relating to the French tax group available for offsetting against net deferred tax liabilities (subject to the 50% cap) are recognised are the balance sheet.

RECONCILIATION BETWEEN THEORETICAL INCOME TAX IN FRANCE AND INCOME 14.2. TAX IN THE CONSOLIDATED STATEMENT OF INCOME This reconciliation covers the full results of consolidated companies regardless of their classification in the statement of income.

2017

2016

(in million euros)

Pre-tax profit (loss) from continuing operations

2,849

2,343

Pre-tax profit (loss) before tax on expenses related to operations to be continued in partnership

- -

(16) 248

Pre-tax profit (loss) from operations to be continued in partnership Income (loss) before tax of fully-consolidated companies

2,849 34.4%

2,575 34.4%

French statutory income tax rate for the period

Theoretical tax expense for the period based on the French statutory income tax rate Tax effect of the following items: Permanent differences and unrecognised loss carryforwards of the period (1) >

(981)

(887)

(102)

114 70 27 83

Income taxable at reduced rates >

80 27 133

Tax credits >

Effect of differences in foreign tax rates and other >

Income tax before impairment losses on the French tax group

(843)

(593)

Assets on French tax consolidation deficits of Peugeot S.A. generated during > the year and unrecognised or impaired

134

76

Other impairment losses > INCOME TAX EXPENSE

8

(37)

(701) (701)

(554) (517)

of which tax expense on continuing operations >

of which tax expense on expenses related to operations to be continued in > partnership of which tax expense on operations to be continued in partnership > Of which €(219) million in 2017 in respect of the tax loss carryforwards of Opel Vauxhall. (1)

- -

6

(43)

Tax credits include research tax credits that do not meet the definition of government grants.

224

GROUPE PSA - 2017 REGISTRATION DOCUMENT