Income tax expense (Tables)

6 Months Ended

Dec. 31, 2022


	Half year ended 31 Dec 2022 US$M		Half year ended 31 Dec 2021 US$M		Year ended 30 June 2022 US$M
Total taxation expense comprises:
Current tax expense		2,738		4,184		10,673
Deferred tax expense		317		775		64

		3,055		4,959		10,737

Summary of Factors Affecting Income Tax Expense


	Half year ended 31 Dec 2022 US$M			Half year ended 31 Dec 2021 US$M			Year ended 30 June 2022 US$M
Factors affecting income tax expense for the year
Income tax expense differs to the standard rate of corporation tax as follows:
Profit before taxation		10,181			14,493			33,137

Tax on profit at Australian prima facie tax rate of 30 per cent		3,054			4,348			9,941

Non-tax effected operating losses and capital gains 1		162			709			1,087
Tax on remitted and unremitted foreign earnings		37			344			441
Foreign exchange adjustments		11			(91	)		(233	)
Amounts over provided in prior years		(5	)		(17	)		(80	)
Recognition of previously unrecognised tax assets		(28	)		(195	)		(3	)
Tax effect of (profit)/loss from equity accounted investments, related impairments and expenses 2		(52	)		42			(19	)
Impact of tax rates applicable outside of Australia		(189	)		(411	)		(801	)
Other		48			104			97

Income tax expense		3,038			4,833			10,430

Royalty-related taxation (net of income tax benefit)		17			126			307

Total taxation expense		3,055			4,959			10,737

1	Includes the tax impacts related to the exceptional impairments of US deferred tax assets in the half year ended 31 December 2021 and the year ended 30 June 2022. Refer to note 2 ‘Exceptional Items’ for further information.

The (profit)/loss from equity accounted investments and related expenses is net of income tax, with the exception of the Samarco forward exchange derivatives described in note 9 ‘Significant events – Samarco dam failure’. This item removes the prima facie tax effect on such profits and related expenses, excluding the impact of the Samarco forward exchange derivatives which are taxable.