| (in millions of euro) | FISCAL 2021 | FISCAL 2020 |
|---|---|---|
| Profit for the year before tax | Profit for the year before tax FISCAL 2021237 |
Profit for the year before tax FISCAL 2020(221) |
| Share of profit of companies accounted for using the equity method | Share of profit of companies accounted for using the equity method FISCAL 2021(9) |
Share of profit of companies accounted for using the equity method FISCAL 2020(9) |
| Profit before tax excluding share of profit of companies accounted for using the equity method | Profit before tax excluding share of profit of companies accounted for using the equity methodFISCAL 2021229 | Profit before tax excluding share of profit of companies accounted for using the equity methodFISCAL 2020(230) |
| Tax rate applicable to Sodexo S.A. | Tax rate applicable to Sodexo S.A. FISCAL 202132.02% |
Tax rate applicable to Sodexo S.A. FISCAL 202034.43% |
| Theoretical income tax (expense)/income | Theoretical income tax (expense)/incomeFISCAL 2021(73) | Theoretical income tax (expense)/incomeFISCAL 202079 |
| Effect of jurisdictional tax rate differences | Effect of jurisdictional tax rate differences FISCAL 202137 |
Effect of jurisdictional tax rate differences FISCAL 202015 |
| Permanently non-deductible expenses or non-taxable income | Permanently non-deductible expenses or non-taxable income FISCAL 2021(1) |
Permanently non-deductible expenses or non-taxable income FISCAL 2020(43) |
| Other tax repayments/(charges), net | Other tax repayments/(charges), net FISCAL 2021(18) |
Other tax repayments/(charges), net FISCAL 2020(18) |
| 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 20218 |
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 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 2021(46) |
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) |
| Actual income tax expense | Actual income tax expenseFISCAL 2021(94) | Actual income tax expenseFISCAL 2020(97) |
| Withholding taxes | Withholding taxes FISCAL 2021(7) |
Withholding taxes FISCAL 2020(1) |
| TOTAL INCOME TAX EXPENSE | TOTAL INCOME TAX EXPENSEFISCAL 2021(101) | TOTAL INCOME TAX EXPENSEFISCAL 2020(98) |
* Including unrecognized deferred tax assets arising from non-recurring tax loss carry-forwards and temporary differences for 31 million euro.
The effective tax rate, calculated on profit for the period before tax and excluding the share of profit of companies accounted for using the equity method, went from -42.6% for Fiscal 2020 to 43.9% for Fiscal 2021 . Income tax expense of 101 million euro is driven by tax loss carry-forwards and temporary differences arising during the period but not recognized as a deferred tax asset for 46 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 2021 :
| (in millions of euro) | AUGUST 31, 2020 | DEFERRED TAX BENEFIT/ (EXPENSE) | DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME | CURRENCY TRANSLATION ADJUSTMENT AND OTHER | AUGUST 31, 2021 |
|---|---|---|---|---|---|
| Employee-related liabilities | Employee-related liabilities AUGUST 31, 2020151 |
Employee-related liabilities DEFERRED TAX BENEFIT/ (EXPENSE)1 |
Employee-related liabilities DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME(1) |
Employee-related liabilities CURRENCY TRANSLATION ADJUSTMENT AND OTHER3 |
Employee-related liabilities AUGUST 31, 2021154 |
| Fair value of financial instruments | Fair value of financial instruments AUGUST 31, 20202 |
Fair value of financial instruments DEFERRED TAX BENEFIT/ (EXPENSE)13 |
Fair value of financial instruments DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME2 |
Fair value of financial instruments CURRENCY TRANSLATION ADJUSTMENT AND OTHER(1) |
Fair value of financial instruments AUGUST 31, 202116 |
| Intangible assets | Intangible assets AUGUST 31, 2020(30) |
Intangible assets DEFERRED TAX BENEFIT/ (EXPENSE)9 |
Intangible assets DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME— |
Intangible assets CURRENCY TRANSLATION ADJUSTMENT AND OTHER(1) |
Intangible assets AUGUST 31, 2021(22) |
| Goodwill | Goodwill AUGUST 31, 2020(199) |
Goodwill DEFERRED TAX BENEFIT/ (EXPENSE)5 |
Goodwill DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME— |
Goodwill CURRENCY TRANSLATION ADJUSTMENT AND OTHER(6) |
Goodwill AUGUST 31, 2021(200) |
| Other temporary differences | Other temporary differences AUGUST 31, 202038 |
Other temporary differences DEFERRED TAX BENEFIT/ (EXPENSE)(26) |
Other temporary differences DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME3 |
Other temporary differences CURRENCY TRANSLATION ADJUSTMENT AND OTHER3 |
Other temporary differences AUGUST 31, 202118 |
| Tax loss carry-forwards | Tax loss carry-forwards AUGUST 31, 202077 |
Tax loss carry-forwards DEFERRED TAX BENEFIT/ (EXPENSE)13 |
Tax loss carry-forwards DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME— |
Tax loss carry-forwards CURRENCY TRANSLATION ADJUSTMENT AND OTHER7 |
Tax loss carry-forwards AUGUST 31, 202197 |
| TOTAL NET DEFERRED TAX | TOTAL NET DEFERRED TAXAUGUST 31, 202039 | TOTAL NET DEFERRED TAXDEFERRED TAX BENEFIT/ (EXPENSE)15 | TOTAL NET DEFERRED TAXDEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME4 | TOTAL NET DEFERRED TAXCURRENCY TRANSLATION ADJUSTMENT AND OTHER5 | TOTAL NET DEFERRED TAXAUGUST 31, 202163 |
| Of which Deferred tax assets | Of which Deferred tax assetsAUGUST 31, 2020137 | Of which Deferred tax assetsDEFERRED TAX BENEFIT/ (EXPENSE)— | Of which Deferred tax assetsDEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME— | Of which Deferred tax assetsCURRENCY TRANSLATION ADJUSTMENT AND OTHER— | Of which Deferred tax assetsAUGUST 31, 2021165 |
| Of which Deferred tax liabilities | Of which Deferred tax liabilitiesAUGUST 31, 2020(97) | Of which Deferred tax liabilitiesDEFERRED TAX BENEFIT/ (EXPENSE)— | Of which Deferred tax liabilitiesDEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME— | Of which Deferred tax liabilitiesCURRENCY TRANSLATION ADJUSTMENT AND OTHER— | Of which Deferred tax liabilitiesAUGUST 31, 2021(101) |
