| (in millions of euro) | FISCAL 2020 | FISCAL 2019 |
|---|---|---|
| Profit for the year before tax | Profit for the year before tax FISCAL 2020(221) | Profit for the year before tax FISCAL 2019963 |
| Share of profit of companies consolidated by the equity method | Share of profit of companies consolidated by the equity method FISCAL 2020(9) | Share of profit of companies consolidated by the equity method FISCAL 2019(6) |
| Profit before tax excluding share of profit of companies consolidated by the equity method | Profit before tax excluding share of profit of companies consolidated by the equity methodFISCAL 2020(230) | Profit before tax excluding share of profit of companies consolidated by the equity methodFISCAL 2019957 |
| Tax rate applicable to Sodexo S.A. | Tax rate applicable to Sodexo S.A. FISCAL 202034,43 % | Tax rate applicable to Sodexo S.A. FISCAL 201934,43 % |
| Theoretical income tax (expense)/income | Theoretical income tax (expense)/incomeFISCAL 202079 | Theoretical income tax (expense)/incomeFISCAL 2019(330) |
| Effect of jurisdictional tax rate differences | Effect of jurisdictional tax rate differences FISCAL 202015 | Effect of jurisdictional tax rate differences FISCAL 2019101 |
| Permanently non-deductible expenses or non-taxable income | Permanently non-deductible expenses or non-taxable income FISCAL 2020(43) | Permanently non-deductible expenses or non-taxable income FISCAL 2019(49) |
| Other tax repayments/(charges), net | Other tax repayments/(charges), net FISCAL 2020(18) | Other tax repayments/(charges), net FISCAL 2019(9) |
| Tax loss carry-forwards used or recognized during the period but not recognized as a deferred tax asset in prior periods | Tax loss carry-forwards used or recognized during the period but not recognized as a deferred tax asset in prior periods FISCAL 20201 | Tax loss carry-forwards used or recognized during the period but not recognized as a deferred tax asset in prior periods FISCAL 201912 |
| Tax loss carry-forwards and temporary differences arising during the period or prior years but not recognized as a deferred tax asset* | Tax loss carry-forwards and temporary differences arising during the period or prior years but not recognized as a deferred tax asset *FISCAL 2020(131) | Tax loss carry-forwards and temporary differences arising during the period or prior years but not recognized as a deferred tax asset *FISCAL 20196 |
| Actual income tax expense | Actual income tax expenseFISCAL 2020(97) | Actual income tax expenseFISCAL 2019(269) |
| Withholding taxes | Withholding taxes FISCAL 2020(1) | Withholding taxes FISCAL 2019(8) |
| TOTAL INCOME TAX EXPENSE | TOTAL INCOME TAX EXPENSEFISCAL 2020(98) | TOTAL INCOME TAX EXPENSEFISCAL 2019(277) |
* Including unrecognized deferred tax assets arising from non-recurring tax loss carry-forwards and temporary differences for 122 million euro.
The effective tax rate, calculated on profit for the period before tax and excluding the share of profit of companies consolidated by the equity method, went from 29% for Fiscal 2019 to -43% for Fiscal 2020. Income tax expense of 98 million euro despite a negative profit for the year before tax is mainly driven by tax loss carry-forwards and temporary differences arising during the period but not recognized as a deferred tax asset for 131 million euro, mainly in France due to material non-recurring expenses, where there no prospect of short-term recoverability.
Movements in deferred taxes were as follows in Fiscal 2020:
| (in millions of euro) | AUGUST 31, 2019 | RESTATEMENT DUE TO IFRIC 23 FIRST APPLICATION | SEPTEMBER 1, 2019 | DEFERRED TAX BENEFIT/(EXPENSE) | DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME | CURRENCY TRANSLATION ADJUSTMENT AND OTHER | AUGUST 31, 2020 |
|---|---|---|---|---|---|---|---|
| Employee-related liabilities | Employee-related liabilities AUGUST 31, 2019140 | Employee-related liabilities RESTATEMENT DUE TO IFRIC 23 FIRST APPLICATION- | Employee-related liabilities SEPTEMBER 1, 2019140 | Employee-related liabilities DEFERRED TAX BENEFIT/(EXPENSE)31 | Employee-related liabilities DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME(9) | Employee-related liabilities CURRENCY TRANSLATION ADJUSTMENT AND OTHER(11) | Employee-related liabilities AUGUST 31, 2020151 |
| Fair value of financial instruments | Fair value of financial instruments AUGUST 31, 20198 | Fair value of financial instruments RESTATEMENT DUE TO IFRIC 23 FIRST APPLICATION- | Fair value of financial instruments SEPTEMBER 1, 20198 | Fair value of financial instruments DEFERRED TAX BENEFIT/(EXPENSE)(5) | Fair value of financial instruments DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME- | Fair value of financial instruments CURRENCY TRANSLATION ADJUSTMENT AND OTHER(1) | Fair value of financial instruments AUGUST 31, 20202 |
| Intangible assets | Intangible assets AUGUST 31, 2019(42) | Intangible assets RESTATEMENT DUE TO IFRIC 23 FIRST APPLICATION- | Intangible assets SEPTEMBER 1, 2019(42) | Intangible assets DEFERRED TAX BENEFIT/(EXPENSE)11 | Intangible assets DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME- | Intangible assets CURRENCY TRANSLATION ADJUSTMENT AND OTHER1 | Intangible assets AUGUST 31, 2020(30) |
| Goodwill | Goodwill AUGUST 31, 2019(248) | Goodwill RESTATEMENT DUE TO IFRIC 23 FIRST APPLICATION- | Goodwill SEPTEMBER 1, 2019(248) | Goodwill DEFERRED TAX BENEFIT/(EXPENSE)4 | Goodwill DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME- | Goodwill CURRENCY TRANSLATION ADJUSTMENT AND OTHER45 | Goodwill AUGUST 31, 2020(199) |
| Other temporary differences | Other temporary differences AUGUST 31, 2019(3) | Other temporary differences RESTATEMENT DUE TO IFRIC 23 FIRST APPLICATION- | Other temporary differences SEPTEMBER 1, 2019(3) | Other temporary differences DEFERRED TAX BENEFIT/(EXPENSE)51 | Other temporary differences DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME10 | Other temporary differences CURRENCY TRANSLATION ADJUSTMENT AND OTHER(20) | Other temporary differences AUGUST 31, 202038 |
| Tax loss carry-forwards | Tax loss carry-forwards AUGUST 31, 201993 | Tax loss carry-forwards RESTATEMENT DUE TO IFRIC 23 FIRST APPLICATION(6) | Tax loss carry-forwards SEPTEMBER 1, 201987 | Tax loss carry-forwards DEFERRED TAX BENEFIT/(EXPENSE)(4) | Tax loss carry-forwards DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME- | Tax loss carry-forwards CURRENCY TRANSLATION ADJUSTMENT AND OTHER(6) | Tax loss carry-forwards AUGUST 31, 202077 |
| TOTAL NET DEFERRED TAX | TOTAL NET DEFERRED TAXAUGUST 31, 2019(52) | TOTAL NET DEFERRED TAXRESTATEMENT DUE TO IFRIC 23 FIRST APPLICATION(6) | TOTAL NET DEFERRED TAXSEPTEMBER 1, 2019(58) | TOTAL NET DEFERRED TAXDEFERRED TAX BENEFIT/(EXPENSE)88 | TOTAL NET DEFERRED TAXDEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME1 | TOTAL NET DEFERRED TAXCURRENCY TRANSLATION ADJUSTMENT AND OTHER7 | TOTAL NET DEFERRED TAXAUGUST 31, 202039 |
| Of which Deferred tax assets | Of which Deferred tax assetsAUGUST 31, 201999 | Of which Deferred tax assetsRESTATEMENT DUE TO IFRIC 23 FIRST APPLICATION(6) | Of which Deferred tax assetsSEPTEMBER 1, 201993 | Of which Deferred tax assetsAUGUST 31, 2020137 | |||
| Of which Deferred tax liabilities | Of which Deferred tax liabilitiesAUGUST 31, 2019(151) | Of which Deferred tax liabilitiesRESTATEMENT DUE TO IFRIC 23 FIRST APPLICATION- | Of which Deferred tax liabilitiesSEPTEMBER 1, 2019(151) | Of which Deferred tax liabilitiesAUGUST 31, 2020(97) |
