| (in million euros) | FISCAL 2022 | FISCAL 2021 |
|---|---|---|
| Profit for the year before tax | Profit for the year before tax FISCAL 2022 969 |
Profit for the year before tax FISCAL 2021 237 |
| Share of profit of companies accounted for using the equity method | Share of profit of companies accounted for using the equity method FISCAL 2022 (8) |
Share of profit of companies accounted for using the equity method FISCAL 2021 (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 method FISCAL 2022 961 |
Profit before tax excluding share of profit of companies accounted for using the equity method FISCAL 2021 229 |
| Tax rate applicable to Sodexo S.A. | Tax rate applicable to Sodexo S.A. FISCAL 2022 28.4% |
Tax rate applicable to Sodexo S.A. FISCAL 2021 32.02% |
| Theoretical income tax (expense)/income | Theoretical income tax (expense)/income FISCAL 2022 (273) |
Theoretical income tax (expense)/income FISCAL 2021 (73) |
| Effect of jurisdictional tax rate differences | Effect of jurisdictional tax rate differences FISCAL 2022 39 |
Effect of jurisdictional tax rate differences FISCAL 2021 37 |
| Permanently non-deductible expenses or non-taxable income | Permanently non-deductible expenses or non-taxable income FISCAL 2022 2 |
Permanently non-deductible expenses or non-taxable income FISCAL 2021 (1) |
| Other tax repayments/(charges), net | Other tax repayments/(charges), net FISCAL 2022 8 |
Other tax repayments/(charges), net FISCAL 2021 (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 2022 4 |
Tax loss carry-forwards used or recognized during the period but not recognized as a deferred tax asset in prior periods FISCAL 2021 8 |
|
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 2022 (35) |
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) |
| Actual income tax expense | Actual income tax expense FISCAL 2022 (256) |
Actual income tax expense FISCAL 2021 (94) |
| Withholding taxes | Withholding taxes FISCAL 2022 (9) |
Withholding taxes FISCAL 2021 (7) |
| TOTAL INCOME TAX EXPENSE | TOTAL INCOME TAX EXPENSE FISCAL 2022 (264) |
TOTAL INCOME TAX EXPENSE FISCAL 2021 (101) |
*Including unrecognized deferred tax assets arising from non-recurring tax loss carry-forwards and temporary differences for 20 million euros in Fiscal 2022 (31 million euros in Fiscal 2021).
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 43.9% for Fiscal 2021 to 27.5% for Fiscal 2022. Income tax expense of 264 million euros is driven by tax loss carry-forwards and temporary differences arising during the period but not recognized as a deferred tax asset for 35 million euros, 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 2022:
| (in million euros) | AUGUST 31, 2021 | CHANGE IN ACCOUNTING PRINCIPLES | SEPTEMBER 1, 2021 | DEFERRED TAX BENEFIT/(EXPENSE) | DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME | CURRENCY TRANSLATION ADJUSTMENT AND OTHER | AUGUST 31,2022 |
|---|---|---|---|---|---|---|---|
| Employee-related liabilities | Employee-related liabilitiesAUGUST 31, 2021 154 |
Employee-related liabilities CHANGE IN ACCOUNTING PRINCIPLES (3) |
Employee-related liabilitiesSEPTEMBER 1, 2021 151 |
Employee-related liabilities DEFERRED TAX BENEFIT/(EXPENSE) (4) |
Employee-related liabilities DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME (22) |
Employee-related liabilities CURRENCY TRANSLATION ADJUSTMENT AND OTHER 21 |
Employee-related liabilitiesAUGUST 31,2022 146 |
| Fair value of financial instruments | Fair value of financial instrumentsAUGUST 31, 2021 16 |
Fair value of financial instruments CHANGE IN ACCOUNTING PRINCIPLES — |
Fair value of financial instrumentsSEPTEMBER 1, 2021 16 |
Fair value of financial instruments DEFERRED TAX BENEFIT/(EXPENSE) (13) |
Fair value of financial instruments DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME (2) |
Fair value of financial instruments CURRENCY TRANSLATION ADJUSTMENT AND OTHER 2 |
Fair value of financial instrumentsAUGUST 31,2022 3 |
| Goodwill | GoodwillAUGUST 31, 2021 (200) |
Goodwill CHANGE IN ACCOUNTING PRINCIPLES — |
GoodwillSEPTEMBER 1, 2021 (200) |
Goodwill DEFERRED TAX BENEFIT/(EXPENSE) (4) |
Goodwill DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME — |
Goodwill CURRENCY TRANSLATION ADJUSTMENT AND OTHER (36) |
GoodwillAUGUST 31,2022 (240) |
| Intangible assets | Intangible assetsAUGUST 31, 2021 (22) |
Intangible assets CHANGE IN ACCOUNTING PRINCIPLES 10 |
Intangible assetsSEPTEMBER 1, 2021 (12) |
Intangible assets DEFERRED TAX BENEFIT/(EXPENSE) (6) |
Intangible assets DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME — |
Intangible assets CURRENCY TRANSLATION ADJUSTMENT AND OTHER (4) |
Intangible assetsAUGUST 31,2022 (22) |
| Other temporary differences | Other temporary differencesAUGUST 31, 2021 18 |
Other temporary differences CHANGE IN ACCOUNTING PRINCIPLES — |
Other temporary differencesSEPTEMBER 1, 2021 18 |
Other temporary differences DEFERRED TAX BENEFIT/(EXPENSE) (9) |
Other temporary differences DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME 1 |
Other temporary differences CURRENCY TRANSLATION ADJUSTMENT AND OTHER (2) |
Other temporary differencesAUGUST 31,2022 8 |
| Tax loss carry-forwards | Tax loss carry-forwardsAUGUST 31, 2021 97 |
Tax loss carry-forwards CHANGE IN ACCOUNTING PRINCIPLES — |
Tax loss carry-forwardsSEPTEMBER 1, 2021 97 |
Tax loss carry-forwards DEFERRED TAX BENEFIT/(EXPENSE) (9) |
Tax loss carry-forwards DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME — |
Tax loss carry-forwards CURRENCY TRANSLATION ADJUSTMENT AND OTHER 10 |
Tax loss carry-forwardsAUGUST 31,2022 98 |
| TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES) | TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES) AUGUST 31, 202163 |
TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES) CHANGE IN ACCOUNTING PRINCIPLES 7 |
TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES) SEPTEMBER 1, 202170 |
TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES) DEFERRED TAX BENEFIT/(EXPENSE) (45) |
TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES) DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME (23) |
TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES) CURRENCY TRANSLATION ADJUSTMENT AND OTHER (9) |
TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES) AUGUST 31,2022(7) |
| Of which deferred tax assets | Of which deferred tax assets AUGUST 31, 2021165 |
Of which deferred tax assets CHANGE IN ACCOUNTING PRINCIPLES — |
Of which deferred tax assets SEPTEMBER 1, 2021176 |
Of which deferred tax assets DEFERRED TAX BENEFIT/(EXPENSE) — |
Of which deferred tax assets DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME — |
Of which deferred tax assets CURRENCY TRANSLATION ADJUSTMENT AND OTHER — |
Of which deferred tax assets AUGUST 31,2022154 |
| Of which deferred tax liabilities | Of which deferred tax liabilities AUGUST 31, 2021(101) |
Of which deferred tax liabilities CHANGE IN ACCOUNTING PRINCIPLES — |
Of which deferred tax liabilities SEPTEMBER 1, 2021(106) |
Of which deferred tax liabilities DEFERRED TAX BENEFIT/(EXPENSE) — |
Of which deferred tax liabilities DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME — |
Of which deferred tax liabilities CURRENCY TRANSLATION ADJUSTMENT AND OTHER — |
Of which deferred tax liabilities AUGUST 31,2022(161) |
| (in million euros) | 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 liabilitiesAUGUST 31, 2020 151 |
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 OTHER 3 |
Employee-related liabilitiesAUGUST 31, 2021 154 |
| Fair value of financial instruments | Fair value of financial instrumentsAUGUST 31, 2020 2 |
Fair value of financial instruments DEFERRED TAX BENEFIT/(EXPENSE) 13 |
Fair value of financial instruments DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME 2 |
Fair value of financial instruments CURRENCY TRANSLATION ADJUSTMENT AND OTHER (1) |
Fair value of financial instrumentsAUGUST 31, 2021 16 |
| Goodwill | GoodwillAUGUST 31, 2020 (199) |
Goodwill DEFERRED TAX BENEFIT/(EXPENSE) 5 |
Goodwill DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME — |
Goodwill CURRENCY TRANSLATION ADJUSTMENT AND OTHER (6) |
GoodwillAUGUST 31, 2021 (200) |
| Intangible assets | Intangible assetsAUGUST 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 assetsAUGUST 31, 2021 (22) |
| Other temporary differences | Other temporary differencesAUGUST 31, 2020 38 |
Other temporary differences DEFERRED TAX BENEFIT/(EXPENSE) (26) |
Other temporary differences DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME 3 |
Other temporary differences CURRENCY TRANSLATION ADJUSTMENT AND OTHER 3 |
Other temporary differencesAUGUST 31, 2021 18 |
| Tax loss carry-forwards | Tax loss carry-forwardsAUGUST 31, 2020 77 |
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 OTHER 7 |
Tax loss carry-forwardsAUGUST 31, 2021 97 |
| TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES) | TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES) AUGUST 31, 202039 |
TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES) DEFERRED TAX BENEFIT/(EXPENSE) 15 |
TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES) DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME 4 |
TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES) CURRENCY TRANSLATION ADJUSTMENT AND OTHER 5 |
TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES) AUGUST 31, 202163 |
| Of which deferred tax assets | Of which deferred tax assets AUGUST 31, 2020137 |
Of which deferred tax assets DEFERRED TAX BENEFIT/(EXPENSE) — |
Of which deferred tax assets DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME — |
Of which deferred tax assets CURRENCY TRANSLATION ADJUSTMENT AND OTHER — |
Of which deferred tax assets AUGUST 31, 2021165 |
| Of which deferred tax liabilities | Of which deferred tax liabilities AUGUST 31, 2020(97) |
Of which deferred tax liabilities DEFERRED TAX BENEFIT/(EXPENSE) — |
Of which deferred tax liabilities DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME — |
Of which deferred tax liabilities CURRENCY TRANSLATION ADJUSTMENT AND OTHER — |
Of which deferred tax liabilities AUGUST 31, 2021(101) |
As of August 31, 2022, the deferred tax assets arising from tax loss carry-forwards amount to 98 million euros (97 million euros as of August 31, 2021). Brazil and Germany are the main countries with tax loss carry-forwards recognized (for those countries, the use of tax loss carry-forwards is unlimited). The recoverability of the deferred tax assets arising from tax loss carry-forwards is assessed based on a business plan performed at the level of each tax jurisdiction.
