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Taxes on Income (Tables)
 12 Months Ended
Dec. 31, 2022
Major components of tax expense (income) [abstract]  
Schedule of tax rates of subsidiaries incorporated outside of Israel
Country
Tax rate
Note
Brazil
34%
  
Germany
29%
  
United States
26%
(1)
Netherlands
25.8%
  
Spain
25%
  
China
25%
  
United Kingdom
19%
  
 
  (1)
The tax rate is an estimated average and includes federal and states tax. Different rate may apply in each specific year, as a result of different allocation of income between the different states.
Schedule of reconciliation of changes in deferred tax liability (asset)
 
In respect of financial position
In respect
of carry forward tax losses
Total
 
Depreciable property,
plant and equipment and intangible assets
Inventories
Provisions for employee benefits
Other
 
$millions
 
Balance as of January 1, 2021
(439)
38
94
(7)
115
(199)
Changes in 2021:
            
Additions in respect of business combinations
-
1
1
9
2
13
Amounts recorded in the statement of income
16
-
2
(14)
(24)
(20)
Amounts recorded to a capital reserve
-
-
(22)
(1)
-
(23)
Translation differences
2
-
(2)
(3)
(5)
(8)
Balance as of December 31, 2021
(421)
39
73
(16)
88
(237)
             
Changes in 2022:
            
Amounts recorded in the statement of income
(127)
33
4
31
35
(24)
Amounts recorded to a capital reserve
-
-
(12)
4
-
(8)
Translation differences
1
-
(1)
-
(4)
(4)
Balance as of December 31, 2022
(547)
72
64
19
119
(273)
Schedule of deferred taxes denominated by currencies
 
As of December 31
 
2022
2021
 
$millions
$millions
 
Israeli Shekels
(368)
(327)
Euro
51
84
Brazilian Real
28
13
British Pound
16
-
U.S Dollar
(8)
(10)
Other
8
3
 
(273)
(237)
Schedule of composition of the taxes on income
 
For the year ended December 31
 
2022
2021
2020
 
$ millions
$ millions
$ millions
 
Current taxes
869
145
70
Deferred taxes
45
22
(43)
Taxes in respect of prior years
271
93
(2)
 
1,185
260
25
Schedule of effective income tax rate reconciliation
 
 
For the year ended December 31
 
2022
2021
2020
 
$ millions
$ millions
$ millions
 
Income before taxes on income, as reported in the statements of income
3,404
1,092
49
Statutory tax rate (in Israel)
23%
23%
23%
Theoretical tax expense
783
251
11
Add (less) – the tax effect of:
      
Surplus Profit Levy tax
265
-
-
Reduced tax due to tax benefits
(95)
(64)
(6)
Differences deriving from additional deduction and different tax rates applicable to foreign subsidiaries
1
(10)
(4)
Tax on dividend
5
3
2
Deductible temporary differences and their reversal (including carryforward losses) for which deferred taxes assets were not recorded and non–deductible expenses
(29)
(8)
14
Taxes in respect of prior years*
271
93
(2)
Differences in measurement basis
(21)
(8)
10
Other differences
5
3
-
Taxes on income included in the income statements
1,185
260
25
 

* For 2022, included $275 million relating to Surplus Profit Levy, of which $188 in respect of the settlement agreement as mentioned above.
Schedule of taxes on income relating to items recorded in equity
 
For the year ended December 31
 
2022
2021
2020
 
$ millions
$ millions
$ millions
 
Tax recorded in other comprehensive income
      
Actuarial gains from defined benefit plan
(12)
(22)
(6)
Change in investments at fair value through other comprehensive income
-
(21)
-
Change in fair value of hedging derivatives
4
-
-
Taxes in respect of exchange rate differences on equity loan to a subsidiary included in translation adjustment
(11)
(1)
(3)
Total
(19)
(44)
(9)