Details are as follows:
| (in millions of euros) | 2019 | 2018 |
|---|---|---|
| Current tax expense | Current tax expense 2019 (1,609) | Current tax expense 2018 (266) |
| Deferred taxes | Deferred taxes 2019 28 | Deferred taxes 2018 444 |
| TOTAL | TOTAL 2019 (1,581) | TOTAL 2018 178 |
*Restated for the impacts of IFRS 5 concerning the discontinued E&P operations (see note 2.3).
In 2019, €(1,519) million of the current tax expense relates to French companies, and €(90) million relates to other subsidiaries (€(168) million and €(98) million respectively in 2018).
| (in millions of euros) | 2019 | 2018 |
|---|---|---|
| Income of consolidated companies before tax | Income of consolidated companies before tax 2019 6,399 | Income of consolidated companies before tax 2018 656 |
| Income tax rate applicable to the parent company | Income tax rate applicable to the parent company 2019 34.43% | Income tax rate applicable to the parent company 2018 34.43% |
| Theoretical tax expense | Theoretical tax expense 2019 (2,203) | Theoretical tax expense 2018 (226) |
| Differences in tax rate(2) | Differences in tax rate (2)2019 185 | Differences in tax rate (2)2018 1 |
| Permanent differences(3) | Permanent differences (3)2019 162 | Permanent differences (3)2018 30 |
| Taxes without basis(4) | Taxes without basis (4)2019 118 | Taxes without basis (4)2018 239 |
| Unrecognised deferred tax assets | Unrecognised deferred tax assets 2019 156 | Unrecognised deferred tax assets 2018 132 |
| Other | Other 2019 1 | Other 2018 2 |
| ACTUAL TAX EXPENSE | ACTUAL TAX EXPENSE 2019 (1,581) | ACTUAL TAX EXPENSE 2018 178 |
| EFFECTIVE TAX RATE | EFFECTIVE TAX RATE 2019 24.71% | EFFECTIVE TAX RATE 2018 -27.13% |
(1) Restated for the impacts of IFRS 5 concerning the discontinued E&P operations (see note 2.3).
The income tax expense amounts to €(1,581) million in 2019, corresponding to an effective tax rate of 24.71% (compared to an income tax receivable of €178 million in 2018, corresponding to an effective tax rate of -27.13%). The €1,759 million increase in the Group’s tax expense between 2018 and 2019 essentially reflects the €5,743 million increase in net income before tax (notably resulting from changes in unrealised gains and losses on EDF SA’s portfolio of financial assets), which generated an additional tax charge of €1,977 million in application of the French income tax rate of 34.43%.
After elimination of these non-recurring items (mainly changes in unrealised gains and losses on EDF SA’s portfolio of financial assets, impairment and disposals), the effective current tax rate for 2019 is 19.1%, compared to 22.6% in 2018.
The main factors explaining the difference between the theoretical tax rate and this effective rate are:
