XML 31 R18.htm IDEA: XBRL DOCUMENT

Income taxes

12 Months Ended

Dec. 31, 2021

12.	Income taxes

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


Million US dollar	2021			2020			2019
Current year		(2 857	)		(2 082	)		(2 863	)
(Underprovided)/overprovided in prior years		159			119			58

Current tax expense		(2 698	)		(1 963	)		(2 805	)

Origination and reversal of temporary differences		319			(30	)		(21	)
(Utilization)/recognition of deferred tax assets on tax losses		24			13			13
Recognition of previously unrecognized tax losses		5			48			27

Deferred tax (expense)/income		348			31			19

Total income tax expense		(2 350	)		(1 932	)		(2 786	)

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


Million US dollar	2021			2020			2019
Profit/(loss) before tax		8 463			2 080			12 776
Deduct share of results of associates and joint ventures		248			156			152

Profit/(loss) before tax and before share of results of associates and joint ventures		8 215			1 924			12 624

Adjustments to the tax basis
Government incentives		(543	)		(428	)		(709	)
Non-deductible/(non-taxable) mark-to-market on derivatives		48			2 219			(1 776	)
Non-deductible impairment of goodwill		—			2 500			—
Other expenses not deductible for tax purposes		1 979			1 512			1 223
Other non-taxable income		(476	)		(250	)		(282	)

		9 223			7 477			11 080

Aggregate weighted nominal tax rate		26.7	%		27.7	%		26.2	%

Tax at aggregated nominal tax rate		(2 463	)		(2 069	)		(2 901	)

Adjustments on tax expense
Utilization of tax losses not previously recognized		24			13			13
Recognition of deferred taxes on previous years’ tax losses		5			48			27
Write-down of deferred tax assets on losses and current year losses for which no deferred tax asset is recognized		(314	)		(386	)		(137	)
(Underprovided)/overprovided in prior years		159			119			58
Deductions from interest on equity		469			431			666
Deductions from goodwill		14			16			20
Other tax deductions		212			218			259
Change in tax rate		(147	)		61			(95	)
Withholding taxes		(485	)		(423	)		(505	)
Other tax adjustments		175			39			(191	)

		(2 350	)		(1 932	)		(2 786	)

Effective tax rate		28.6	%		100.4	%		22.1	%

The total income tax expense for 2021 amounts to 2 350m US dollar compared to 1 932m US dollar for 2020 and 2 786m US dollar for 2019. The effective tax rate is 28.6% for 2021 compared to 100.4% for 2020 and 22.1% for 2019.

The 2020 effective tax rate was negatively impacted by

non-deductible

losses from derivatives related to the hedging of share-based payment programs and the hedging of the shares issued in a transaction related to the combination with Grupo Modelo and SAB, and the

non-deductible,

non-cash

goodwill impairment loss. The 2019 effective tax rate was positively impacted by

non-taxable

gains from these derivatives.

The company benefits from tax exempted income and tax credits which are expected to continue in the future. The company does not have significant benefits coming from low tax rates in any particular jurisdiction.

Income taxes were directly recognized in other comprehensive income as follows:


Million US dollar	2021			2020		2019
Re-measurements of post-employment benefits		(123	)		58		19
Exchange differences, cash flow and net investment hedges		(45	)		304		88

Income tax (losses)/gains		(167	)		361		107