Income taxes (Tables)

12 Months Ended

Dec. 31, 2021

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	%

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