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E
Financial
E.4
Consolidated financial statements
Atos
|
Registration Document 2016
173
E
Income tax expenses
Note
7
Current and deferred taxes
(In € million)
12months ended
December
31, 2016
12months ended
December
31, 2015
Current taxes
-85.0
-120.3
Deferred taxes
-60.2
10.6
TOTAL
-145.2
-109.7
Effective tax rate
The difference between the French standard tax rate and the Effective Tax Rate (ETR) is explained as follows:
(In € million)
12months ended
December
31, 2016
12months ended
December
31, 2015
Profit before tax
763.9
544.1
French standard tax rate
34.4%
38.0%
Theoretical tax charge at French standard rate
-263.0
-206.8
Impact of permanent differences
36.3
4.5
Differences in foreign tax rates
44.6
76.7
Movement on recognition of deferred tax assets
23.2
63.4
Equity-based compensation
-18.1
-11.5
Change in deferred tax rates
-2.9
-7.6
Taxes not based on taxable income (mainly CVAE, IRAP, US State income Tax)
8.0
-29.9
Withholding taxes
-5.9
-5.0
French Tax credit
20.0
15.1
Other
12.6
-8.6
Group tax expense
-145.2
-109.7
EFFECTIVE TAX RATE
19.0% 20.2%
The Group effective tax rate is 19.0% for 2016.
Restated effective tax rate
After restating the unusual items, the restated profit before tax was € 1054.7 million, restated tax charge of € 236.4 million and the
restated effective tax rate was 22.4%.
(in € million)
12months ended
December
31, 2016
12months ended
December
31, 2015*
Profit before tax
763.9
544.1
Other operating income and expenses
-290.8
-327.7
Profit before tax excluding unusual items
1,054.7
871.8
Tax impact on unusual items
91.2
108.1
Group tax expense
-145.2
-109.7
Total of tax excluding unusual items
-236.4
-217.8
RESTATED EFFECTIVE TAX RATE
22.4% 25.0%
December 31, 2015 adjusted to reflect change in presentation disclosed in “Basis of preparation and Significant accounting policies”.
*