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2.6.8.2 Proof of tax
PROOF OF TAX AT 12/31/2017
€ million
%
Earnings attributable to the Group
108.0
Minority interests
1.0
Recorded income tax (income tax+income tax credit+deferred tax+CVAE)
39.2
Profit (loss) before income tax
146.1
Parent company standard rate
39.32%
Theoretic income tax/rate at 39.32%
57.46
146.65%
DIFFERENCE
Share of non-deductible expenses
1.73
4.4%
Withholding tax on foreign dividends
2.02
5.1%
Delta central rate/local rates
(13.07)
(33.4%)
Tax credits
(0.03)
(0.1%)
Activities not subject to taxation
(3.15)
(8.0%)
Taxes from prior periods
0.15
0.4%
Unused tax losses
2.45
6.3%
Variable carry forward
(9.01)
(23.0%)
Tax consolidation France
1.72
4.4%
Foreign tax consolidation
2.71
6.9%
Macron Law increased depreciation and amortization
(1.98)
(5.1%)
CIR
(1.82)
(4.6%)
Credit
(4.54)
(11.6%)
CVAE (Tax on companies’ added value)
4.91
12.5%
3% tax on LISI SA dividends
(2.18)
(5.6%)
Permanent differences
1.77
4.5%
Other
0.05
0.1 %
INCOME TAX RECORDED TO THE INCOME STATEMENT (INCL. CVAE)
39.2
100.0 %
Effective tax rate (tax expense in the income statement as a ratio of pre-tax income)
26.82 %
The tax charge, calculated on the basis of the corporation tax as a
percentage of the net income before taxes, reflects an effective
average rate of tax of 26.8%, slightly down compared with 2016
(33.7%). The current effective rate would be 31.1% if the one-time
items for the year were adjusted (impact at the start of the year
of the rate change in France and the United States for €-9 million,
the additional tax contribution of 15% in France for €+1.1 million,
claiming of the 3% contribution on dividends for €-2.1 million and the
transitional tax on the undistributed reserves of foreign subsidiaries
of US companies for €3.8 million).
2.6.8.3 Tax rates applied by LISI Group companies
2017
2016
Germany
30.00%
30.00%
England
19.00%
20.00%
Belgium
34.00%
34.00%
Canada
26.90%
26.90%
Spain
30.00%
28.00%
USA
35.00%
40.00%
France *
39.32%
36.10%
Czech Republic
19.00%
19.00%
China
25.00%
25.00%
* Including the exceptional contribution on income tax of 15%.
66
LISI 2017 FINANCIAL REPORT
CONSOLIDATED FINANCIAL STATEMENTS
3