Income taxes (Tables)

6 Months Ended

Jun. 30, 2020

Income taxes recognized in the income statement can be detailed as follows:


For the six-month period ended 30 June Million US dollar	2020			2019 restated
Current tax expense
Current year		(807	)		(1 735	)
Deferred tax (expense)/income		315			170

Total income tax expense in the income statement		(492	)		(1 565	)

The reconciliation of the effective tax rate with the aggregated weighted nominal tax rate can be summarized as follows


For the six-month period ended 30 June Million US dollar	2020			2019 restated
Profit before tax		(3 253	)		7 970
Deduct share of result of associates and joint ventures		33			62
Profit before tax and before share of result of associates and joint ventures		(3 286	)		7 908


Adjustments on taxable basis
Government incentives		(194	)		(379	)
Non-deductible/(non-taxable) marked to market on derivatives		3 162			(2 222	)
Non-deductible impairment of goodwill		2 500			—
Other expenses not deductible for tax purposes		1 208			1 098
Other non-taxable income		(607	)		(549	)

		2 783			5 856

Aggregated weighted nominal tax rate		27.0	%		27.1	%

Tax at aggregated weighted nominal tax rate		(751	)		(1 614	)
Adjustments on tax expense
Utilization of tax losses not previously recognized		117			38
Recognition of deferred taxes assets on previous years’ tax losses		6			3
Write-down of deferred tax assets on tax losses and current year losses for which no deferred tax asset is recognized		(61	)		(126	)
(Underprovided)/overprovided in prior years		34			13
Deductions from interest on equity		144			197
Deductions from goodwill		8			11
Other tax deductions		125			108
Change in tax rate		71			(9	)
Withholding taxes		(195	)		(257	)
Other tax adjustments		10			71

		(492	)		(1 565	)

Effective tax rate		(15.0	%)		19.8	%