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Taxation (Tables)
 12 Months Ended
Dec. 31, 2020
Text Block [Abstract]  
Summary of Tax Charge in Income Statement
   
€ million
   € million   € million 
Tax charge in income statement
  
2020
   2019   2018 
Current tax
               
Current year
  
 
(2,128
) 
   (2,098)    (2,647) 
Over/(under) provided in prior years
  
 
(154
) 
   119    (10) 
   
 
 
   
 
 
   
 
 
 
   
 
(2,282
) 
   (1,979)    (2,657) 
   
 
 
   
 
 
   
 
 
 
Deferred tax
               
Origination and reversal of temporary differences
  
 
344
 
   (255)    5 
Changes in tax rates
  
 
(19
) 
   (59)    (12) 
Recognition of previously unrecognised losses brought forward
  
 
34
 
   30    92 
   
 
 
   
 
 
   
 
 
 
   
 
359
 
   (284)    85 
   
 
 
   
 
 
   
 
 
 
   
 
(1,923
) 
   (2,263)    (2,572) 
   
 
 
   
 
 
   
 
 
 
Summary of Reconciliation of Effective Tax Rate
The reconciliation between the computed weighted average rate of income tax expense, which is generally applicable to Unilever companies, and the actual rate of taxation charged is as follows:
 
Reconciliation of effective tax rate
  
% 2020
   % 2019   % 2018 
Computed rate of tax
(a)
  
 
23
 
   24    25 
Differences between computed rate of tax and effective tax rate due to:
               
Incentive tax credits
  
 
(2
) 
   (2)    (3) 
Withholding tax on dividends
  
 
2
 
   3    2 
Expenses not deductible for tax purposes
  
 
1
 
   1    1 
Irrecoverable withholding tax
  
 
1
 
   1    1 
Income tax reserve adjustments – current and prior year
  
 
(1
) 
   —      1 
Transfer to/(from) unrecognised deferred tax assets
  
 
—  
 
   (2)    —   
Others
  
 
(1
) 
   1    (1) 
   
 
 
   
 
 
   
 
 
 
Underlying effective tax rate
  
 
23
 
   26    26 
Non-underlying
items within operating profit
(b)
  
 
—  
 
   —      (1) 
Taxes related to the UK tax audit of intangible income and centralised services
(b)
  
 
1
 
   —      —   
Impact of Spreads disposal
(b)
  
 
—  
 
   —      (4) 
Taxes related to the reorganisation of our European business
(b)
  
 
1
 
   2    —   
   
 
 
   
 
 
   
 
 
 
Effective tax rate
  
 
25
 
   28    21 
   
 
 
   
 
 
   
 
 
 
 
(a)
The computed tax rate used is the average of the standard rate of tax applicable in the countries in which Unilever operates, weighted by the amount of underlying profit before taxation generated in each of those countries. For this reason, the rate may vary from year to year according to the mix of profit and related tax rates.
(b)
See note 3 for explanation of
non-underlying
items.
Summary of Movements in Deferred Tax Asset (Liability)
Movements in 2020 and 2019
  
€ million
As at
1 January
2020
  
€ million
Income

statement
  
€ million
Other
  
€ million

As at
31 December
2020
  € million
As at
1 January
2019		  € million
Income
statement		  € million
Other		  € million
As at
31 December
2019		 
Pensions and similar obligations
  
 
272
 
 
 
(97
) 
 
 
(95
) 
 
 
80
 
  404   (81)   (51)   272 
Provisions and accruals
  
 
756
 
 
 
38
 
 
 
(96
) 
 
 
698
 
  821   (73)   8   756 
Goodwill and intangible assets
  
 
(2,096
) 
 
 
23
 
 
 
(661
) 
 
 
(2,734
) 
  (1,911)   (31)   (154)   (2,096) 
Accelerated tax depreciation
  
 
(685
) 
 
 
9
 
 
 
35
 
 
 
(641
) 
  (679)   12   (18)   (685) 
Tax losses
  
 
184
 
 
 
32
 
 
 
(26
) 
 
 
190
 
  130   63   (9)   184 
Fair value gains
  
 
(50
) 
 
 
12
 
 
 
(14
) 
 
 
(52
) 
  155   (200)   (5)   (50) 
Fair value losses
  
 
15
 
 
 
(6
) 
 
 
36
 
 
 
45
 
  22   (2)   (5)   15 
Share-based payments
  
 
156
 
 
 
(30
) 
 
 
20
 
 
 
146
 
  175   (39)   20   156 
Lease liability
  
 
319
 
 
 
9
 
 
 
(34
) 
 
 
294
 
  428   (113)   4   319 
Right of use asset
  
 
(269
) 
 
 
(4
) 
 
 
29
 
 
 
(244
) 
  (370)   107   (6)   (269) 
Other
(a)
  
 
161
 
 
 
373
 
 
 
(8
) 
 
 
526
 
  77   73   11   161 
   
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
   
 
(1,237
) 
 
 
359
 
 
 
(814
) 
 
 
(1,692
) 
  (748)   (284)   (205)   (1,237) 
   
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
 
(a)
The deferred tax - other includes the recognition of an asset of €345
 
million relating to the impact of the expected outcome of the Mutual Agreement Procedure which Unilever applied for following the conclusion of the UK tax audit for the tax years 2011-2018.
Summary of Deferred Tax Assets and Liabilities
 
   
€ million
  € million  
€ million
  € million  
€ million
  € million 
   
Assets
  Assets  
Liabilities
  Liabilities  
Total
  Total 
Movements in 2020 and 2019
  
2020
  2019  
2020
  2019  
2020
  2019 
Pensions and similar obligations
  
 
404
 
  402  
 
(324
) 
  (130)  
 
80
 
  272 
Provisions and accruals
  
 
408
 
  495  
 
290
 
  261  
 
698
 
  756 
Goodwill and intangible assets
  
 
330
 
  248  
 
(3,064
) 
  (2,344)  
 
(2,734
) 
  (2,096) 
Accelerated tax depreciation
  
 
(37
) 
  (67)  
 
(604
) 
  (618)  
 
(641
) 
  (685) 
Tax losses
  
 
161
 
  153  
 
29
 
  31  
 
190
 
  184 
Fair value gains
  
 
(1
) 
  (14)  
 
(51
) 
  (36)  
 
(52
) 
  (50) 
Fair value losses
  
 
27
 
  —    
 
18
 
  15  
 
45
 
  15 
Share-based payments
  
 
26
 
  31  
 
120
 
  125  
 
146
 
  156 
Lease liability
  
 
157
 
  170  
 
137
 
  149  
 
294
 
  319 
Right of use asset
  
 
(128
) 
  (142)  
 
(116
) 
  (127)  
 
(244
) 
  (269) 
Other
  
 
127
 
  60  
 
399
 
  101  
 
526
 
  161 
   
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
   
 
1,474
 
  1,336  
 
(3,166
) 
  (2,573)  
 
(1,692
) 
  (1,237) 
   
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Of which deferred tax to be recovered/(settled) after more than 12 months
  
 
1,230
 
  1,030  
 
(3,311
) 
  (2,681)  
 
(2,081
) 
  (1,651) 
   
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Summary of Tax Effects of Components of Other Comprehensive Income Tax effects directly recognised in equity or other comprehensive income were as follows:
 
 
 
 
 
€ million
 
 
 
 
 
€ million
 
 
€ million
 
 
 
 
   
€ million
  
Tax
  
€ million
  
   Tax  € million 
   
Before
  
(charge)/
  
After
  Before   (charge)/  After 
   
tax
  
credit
  
tax
  tax   credit  tax 
Movements in 2020 and 2019
  
2020
  
2020
  
2020
  2019   2019  2019 
Gains/(losses) on:
                          
Equity instruments at fair value through other comprehensive income
  
 
77
 
 
 
1
 
 
 
78
 
  35    (6)   29 
Cash flow hedges
  
 
87
 
 
 
(27
) 
 
 
60
 
  198    (22)   176 
Remeasurements of defined benefit pension plans
  
 
250
 
 
 
(35
) 
 
 
215
 
  381    (28)   353 
Currency retranslation gains/(losses)
  
 
(2,646
) 
 
 
56
 
 
 
(2,590
) 
  6    (21)   (15) 
   
 
 
  
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
   
 
(2,232
) 
 
 
(5
) 
 
 
(2,237
) 
  620    (77)   543