Universal Registration Document 2022

Introduction

Note 13 Income taxes

13.1 Tax group

Since 1 January 1988, EDF and certain subsidiaries have formed a group subject to the tax consolidation system existing under French tax legislation (Articles 223A to 223U of the French Tax Code). This tax group comprises 289 subsidiaries in 2022, including Enedis, EDF International, EDF Renewables and Dalkia.

13.2 Income tax payable

Under Article 223A of the French Tax Code, EDF, as the head of the tax group, is the sole entity responsible for payment of income taxes and additional related contributions.

The tax consolidation agreement between the members of the tax group stipulates that the arrangement must be neutral in effect. In application of this principle, each subsidiary pays the consolidating company a contribution to group income tax equivalent to the tax it would have paid had it been taxed separately.

The tax consolidation agreement between EDF and the subsidiaries included in the tax group requires EDF to reimburse loss-making subsidiaries for the tax saving generated by their losses, as and when the entities concerned make taxable profits, in compliance with the standard rules for use of taxable losses.

EDF, as head of the tax group, recorded income tax income of €147 million for 2022 (after an income tax expense of €1,410 million for 2021).

This income breaks down as follows:

  • tax income of €8,552 million relating to the negative taxable income for 2022, including €41 million of tax credits;
  • a tax expense of €554  million on the exceptional result, which includes €69 million relating to tax litigation as described in note 12, and an amount of €297 million for a tax adjustment upheld by a ruling of 29 August 2022 by Montreuil Administrative Court (see note 29.2);
  • a tax expense of €7,851 million corresponding to adjustments resulting from the tax consolidation.

13.3 Deferred taxes

Deferred taxes are not recognised in EDF’s parent company financial statements. Deferred taxes result from differences between the accounting bases and tax bases of items. They generally arise as a result of timing differences:

  • deferred tax assets reflect expenses which will be tax-deductible in future years or losses carried forward which will reduce taxable income in the future;
  • deferred tax liabilities reflect either advance tax deduction of future accounting expenses or accounting revenues that will be taxable in future years and will increase taxable income in the future.

EDF, as head of the tax group, includes tax losses generated at group level in its deferred tax positions.

Changes in the basis for deferred taxes are as follows:

(in millions of euros) 31/12/2022 31/12/2021 Variation
1. Timing differences generating a deferred tax asset 1. Timing differences generating a deferred tax asset31/12/2022

 

 1. Timing differences generating a deferred tax asset31/12/2021

 

 1. Timing differences generating a deferred tax assetVariation

 
  • Non-deductible provisions (1)
  • Non-deductible provisions (1)
31/12/2022

(17,551)
  • Non-deductible provisions (1)
31/12/2021

(15,469)
  • Non-deductible provisions (1)
Variation

(2,082)
  • Financial instruments and unrealised exchange gains
  • Financial instruments and unrealised exchange gains
31/12/2022

(1,881)
  • Financial instruments and unrealised exchange gains
31/12/2021

(5,656)
  • Financial instruments and unrealised exchange gains
Variation

3,775
  • Other
  • Other
31/12/2022

(428)
  • Other
31/12/2021

(457)
  • Other
Variation

29
Total deferred tax assets subject to the standard rate Total deferred tax assets subject to the standard rate31/12/2022(19,860) Total deferred tax assets subject to the standard rate31/12/2021(21,582) Total deferred tax assets subject to the standard rateVariation1,722
2. Timing differences generating a deferred tax liability 2. Timing differences generating a deferred tax liability31/12/2022

 

 2. Timing differences generating a deferred tax liability31/12/2021

 

 2. Timing differences generating a deferred tax liabilityVariation

 
  • Financial instruments and unrealised exchange losses
  • Financial instruments and unrealised exchange losses
31/12/2022

4,682
  • Financial instruments and unrealised exchange losses
31/12/2021

2,450
  • Financial instruments and unrealised exchange losses
Variation

2,232
  • Other
  • Other
31/12/2022

2,889
  • Other
31/12/2021

2,723
  • Other
Variation

166
Total deferred tax liabilities subject to the standard rate Total deferred tax liabilities subject to the standard rate31/12/20227,572 Total deferred tax liabilities subject to the standard rate31/12/20215,173 Total deferred tax liabilities subject to the standard rateVariation2,398
  • Capital gains not yet taxed
  • Capital gains not yet taxed
31/12/2022

-
  • Capital gains not yet taxed
31/12/2021

-
  • Capital gains not yet taxed
Variation

-
  • Provisions for losses taxable at 15%
  • Provisions for losses taxable at 15%
31/12/2022

(39)
  • Provisions for losses taxable at 15%
31/12/2021

(11)
  • Provisions for losses taxable at 15%
Variation

(28)
Total deferred tax assets subject to the reduced rate Total deferred tax assets subject to the reduced rate31/12/2022(39) Total deferred tax assets subject to the reduced rate31/12/2021(11) Total deferred tax assets subject to the reduced rateVariation(28)
BASIS FOR DEFERRED TAXES BASIS FOR DEFERRED TAXES31/12/2022(12,328) BASIS FOR DEFERRED TAXES31/12/2021(16,420) BASIS FOR DEFERRED TAXESVariation4,092
Future tax receivable at standard rate (2)

Future tax receivable at standard rate

 (2)31/12/2022

11,030

Future tax receivable at standard rate

 (2)31/12/2021

4,237

Future tax receivable at standard rate

 (2)Variation

6,793
Future tax receivable at reduced rate

Future tax receivable at reduced rate

31/12/2022

6

Future tax receivable at reduced rate

31/12/2021

2

Future tax receivable at reduced rate

Variation

4

(1) Mainly concerning post-employment benefits for personnel, and unrealised tax savings resulting from the future deductibility of expenses whose deductibility is provisionally being challenged in ongoing tax litigations.

(2) Incorporating the future tax saving resulting from the tax group’s loss for 2022.