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Taxes on Income (Tables)
 12 Months Ended
Dec. 31, 2024
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
25%
 (2)
 
  (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.
 
  (2)
 The tax rate in the UK was increased from 19% to 25% since April 1, 2023.
 
  (3)
In accordance with the legislation of BEPS Pillar 2 which entered into effect in 2024, there are several territories in which the Company operates, where the local tax rate may require a supplement to a minimum taxation of 15%. Based on the Company estimation, no material impact is expected on its results from the above legislation.
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, 2023
(547)
72
64
19
119
(273)
Changes in 2023:
            
Amounts recorded in the statement of income
(46)
(22)
(5)
(4)
19
(58)
Amounts recorded to a capital reserve
-
-
(8)
(4)
-
(12)
Translation differences
(3)
-
1
4
4
6
Balance as of December 31, 2023
(596)
50
52
15
142
(337)
Changes in 2024:
            
Amounts recorded in the statement of income
(36)
(7)
4
33
23
17
Amounts recorded to a capital reserve
-
-
(8)
-
-
(8)
Translation differences
9
(1)
(1)
(7)
(10)
(10)
Balance as of December 31, 2024
(623)
42
47
41
155
(338)
Schedule of deferred taxes denominated by currencies
 
 
As of December 31
 
2024
2023
 
$ millions
$ millions
 
Israeli Shekels
(432)
(420)
Euro
51
38
Brazilian Real
15
24
British Pound
11
11
U.S Dollar
9
1
Other
8
9
 
(338)
(337)
Schedule of composition of the taxes on income
 
 
For the year ended December 31
 
2024
2023
2022
 
$ millions
$ millions
$ millions
 
Current taxes
184
251
869
Deferred taxes
(20)
47
45
Taxes in respect of prior years
8
(11)
271
 
172
287
1,185
Schedule of effective income tax rate reconciliation
 
 
For the year ended December 31
 
2024
2023
2022
 
$ millions
$ millions
$ millions
 
Income before taxes on income, as reported in the statements of income
636
974
3,404
Statutory tax rate (in Israel)
23%
23%
23%
Theoretical tax expense
146
224
783
Add (less) – the tax effect of:
      
Surplus Profit Levy tax
3
62
265
Reduced tax due to tax benefits
(12)
(17)
(95)
Differences deriving from additional deduction and different tax rates applicable to foreign subsidiaries
(19)
(32)
1
Tax on dividend
6
4
5
Deductible temporary differences and their reversal (including carryforward losses) for which deferred taxes assets were not recorded and non–deductible expenses
29
52
(29)
Taxes in respect of prior years*
8
(11)
271
Differences in measurement basis
3
2
(21)
Other differences
8
3
5
Taxes on income included in the income statements
172
287
1,185
 
 * For 2022, included the settlement agreement related to surplus profit levy, as described above.
Schedule of taxes on income relating to items recorded in equity
 
For the year ended December 31
 
2024
2023
2022
 
$ millions
$ millions
$ millions
 
Tax recorded in other comprehensive income
      
Actuarial gains from defined benefit plan
(8)
(8)
(12)
Change in fair value of hedging derivatives
(2)
(4)
4
Taxes in respect of exchange rate differences on equity loan to a subsidiary included in translation adjustment
27
(9)
(11)
Total
17
(21)
(19)