Income tax is computed in accordance with the tax legislation in force in the countries where the income is taxable. In accordance with IAS 12, deferred tax is recognised on the temporary differences between the carrying amount and the tax base of assets and liabilities. It is calculated using the latest tax rates enacted or substantively enacted at the accounts closing date. The effects of a change in the tax rate from one period to another are recognised in the income statement in the period in which the change was decided, except where they relate to transactions recognised under other comprehensive income or directly in equity.
Deferred tax relating to share-based payments is taken to income to the extent that the deductible amount does not exceed the fair value of plans established according to IFRS 2.
Whenever subsidiaries have distributable reserves, a deferred tax liability is recognised in respect of the probable distributions that will be made in the foreseeable future. Moreover, shareholdings in associates and certain joint ventures give rise to recognition of a deferred tax liability in the event of differences between the carrying amount and the tax base of the shares.
Net deferred tax is determined on the basis of the tax position of each entity or group of entities included in the tax group under consideration and is shown under assets or liabilities for its net amount per tax group. Deferred tax is reviewed at each balance sheet date to take account of the impact of changes in tax law and the prospect of recovery. Deferred tax assets are recognised only to the extent that recovery is probable; an impairment allowance is recognised otherwise. Deferred tax assets and liabilities are not discounted.
| (in € millions) | 2025 | 2024 |
|---|---|---|
| Current tax | Current tax 2025 (2,952) |
Current tax 2024 (2,429) |
| Deferred tax | Deferred tax 2025 291 |
Deferred tax 2024 327 |
| of which temporary differences | of which temporary differences 2025 299 |
of which temporary differences 2024 332 |
| of which tax loss carryforwards | of which tax loss carryforwards 2025 (8) |
of which tax loss carryforwards 2024 (5) |
| Total | Total 2025 (2,661) |
Total 2024 (2,102) |
The net tax expense for the period comprises:
The Group’s effective tax rate was 34.8% in 2025, compared with 29.4% in 2024. This increase reflects the exceptional contribution on corporate income tax for large companies in France, which raised the rate by 5.9%. The Group’s effective tax rate came to 40.3% (28.1% excluding the exceptional contribution) in France and 29.7% outside France.
The Group’s effective tax rate for 2025 was higher than the theoretical tax rate of 25.83% in force in France, owing to the exceptional contribution, permanent differences (including the non-deductible nature of France’s tax on long-distance transport infrastructure operators) and the impact of different tax rates applicable to companies operating in countries other than France.
The difference between the tax calculated using the standard tax rate in force in France and the amount of tax effectively recognised in the year can be analysed as follows:
| (in € millions) | 2025 | 2024 |
|---|---|---|
| Income before tax and profit/(loss) of companies accounted for under the equity method | Income before tax and profit/(loss) of companies accounted for under the equity method 2025 7,636 |
Income before tax and profit/(loss) of companies accounted for under the equity method 2024 7,156 |
| Theoretical tax rate in France (excluding the exceptional contribution) | Theoretical tax rate in France (excluding the exceptional contribution) 2025 25.8% |
Theoretical tax rate in France (excluding the exceptional contribution) 2024 25.8% |
| Theoretical tax expense expected | Theoretical tax expense expected 2025 (1,972) |
Theoretical tax expense expected 2024 (1,848) |
| Exceptional contribution on corporate income tax for large companies in France | Exceptional contribution on corporate income tax for large companies in France 2025 (449) |
Exceptional contribution on corporate income tax for large companies in France 2024 - |
| Tax rate differential on foreign income | Tax rate differential on foreign income 2025 (42) |
Tax rate differential on foreign income 2024 (61) |
| Impact of tax loss carryforwards and other temporary differences that are not recognised or that have previously been subject to limitation | Impact of tax loss carryforwards and other temporary differences that are not recognised or that have previously been subject to limitation 2025 (69) |
Impact of tax loss carryforwards and other temporary differences that are not recognised or that have previously been subject to limitation 2024 (22) |
| Goodwill impairment losses | Goodwill impairment losses 2025 (1) |
Goodwill impairment losses 2024 (2) |
| Permanent differences and other | Permanent differences and other 2025 (128) |
Permanent differences and other 2024 (168) |
| Tax expense recognised | Tax expense recognised 2025 (2,661) |
Tax expense recognised 2024 (2,102) |
| Effective tax rate(*) | Effective tax rate(*) 2025 34.8% |
Effective tax rate(*) 2024 29.4% |
(*) Excluding the Group’s share of companies accounted for under the equity method.
