NOTE 11 TAXES
NOTE 11.1 TAX EXPENSE 2014 Current tax income (expense) Deferred tax income (expense) Net tax income (expense) (5,355) 312 (5,043) 2013 (3,916) (1,393) (5,309)
The research tax credit (crédit d’impôt recherche) applicable in France is deducted from R&D expenses (see note 26). It amounts to €6,829,000 in 2014 (€6,346,000 in 2013), together with a €716,000 provision reversal, following the decision of the French Council of State (Conseil d’État, the supreme court for administrative justice), conﬁrming that proﬁt-sharing expenses could be incorporated in the annual calculation base (see note 14). The French competitiveness and employment tax credit (crédit d’impôt compétitivité et emploi) enacted in 2013, is shown as a deduction from the corresponding personnel expense (see note 28) and amounted to €825,000 in 2014 (€520,000 in 2013). These two tax credits are therefore not included in the net tax charge for the two ﬁscal years presented here.
NOTE 11.2 EFFECTIVE TAX RATE 2014 Income before tax Standard rate of corporate income tax in France Expense at standard rate of corporate income tax in France Effect of other countries’ different tax rates Effect of reduction in unrecognized deferred tax assets Effect of tax credits(1) Effect of Others Net tax income / (expense) Consolidated effective tax rate CVAE(2) Effect of other non taxable income and non deductible expenses(3) 19,396 33.9% (6,567) 570 (245) 2,924 (707) (423) (597) (5,043) 26.0% 2013 27,084 33.4% (9,056) 678 2,312 2,328 (640) (796) (135) (5,309) 19.6%
(1) This mainly includes the non taxation of the research tax credit and the competitiveness and employment tax credit, included in the income before tax. (2) The “cotisation sur la valeur ajoutée des entreprises” (CVAE – tax on corporate added value) in France satisﬁes the deﬁnition of an income tax as set forth in IAS 12.2. (3) This mainly corresponds to income or expenses for the year that will never be subject to taxation or tax deduction, including in particular the neutralization for tax purposes of some consolidation entries.
The net income tax expense in 2013 included the reduction of unrecognized deferred tax assets of the Spanish subsidiary for an amount of €2,238,000. The end of the litigation with Induyco and the receipt the remaining €11,100,000 outstanding allowed for a full recognition of the remaining deferred tax assets of the subsidiary.
134 – 2014 Financial Report
Consolidated ﬁnancial statements