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Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Major components of tax expense (income) [abstract]

Operating taxes and levies recognized in the income statement


(in millions of euros)		2019		2018		2017
Territorial Economic Contribution, IFER and similar taxes		(758)		(820)		(817)
Spectrum fees		(329)		(309)		(304)
Levies on telecommunication services		(276)		(286)		(296)
Other operating taxes and levies		(465)		(425)		(429)
Total		(1,827)		(1,840)		(1,846)

Operating taxes and levies in the statement of financial position


(in millions of euros)		December 31,		December 31,		December 31,
		2019		2018		2017
Value added tax		996		953		958
Other operating taxes and levies		94		74		87
Operating taxes and levies – receivables		1,090		1,027		1,045
Value added tax		(649)		(647)		(616)
Territorial Economic Contribution, IFER and similar taxes		(90)		(94)		(100)
Spectrum fees		(22)		(29)		(40)
Levies on telecommunication services		(118)		(113)		(97)
Other operating taxes and levies		(408)		(439)		(409)
Operating taxes and levies – payables		(1,287)		(1,322)		(1,262)
Operating taxes and levies – net		(197)		(295)		(217)

Net operating taxes and levies (payable)


(in millions of euros)		2019		2018		2017
Net operating taxes and levies (payables) in the opening balance		(295)		(217)		(323)
Operating taxes and levies recognized in profit or loss		(1,827)		(1,840)		(1,846)
Operating taxes and levies paid		1,939		1,777		1,934
Changes in the scope of consolidation		3		(13)		—
Translation adjustment		(16)		(3)		21
Reclassifications and other items		(1)		1		(3)
Reclassifications to assets held for sale		—		—		—
Net operating taxes and levies (payables) in the closing balance		(197)		(295)		(217)

Income tax in profit and loss


(in millions of euros)		2019		2018		2017
Orange SA tax group		(875)		(702)		(564)
• Current tax		(559)		(595)		(391)
• Deferred tax		(316)		(107)		(173)
Spanish tax group		(123)		(164)		(55)
• Current tax		(84)		(65)		(46)
• Deferred tax		(39)		(99)		(9)
Africa & Middle East		(296)		(255)		(256)
• Current tax		(294)		(258)		(255)
• Deferred tax		(1)		3		(1)
United Kingdom		(66)		(66)		(57)
• Current tax		(66)		(66)		(57)
• Deferred tax		(0)		0		0
Other subsidiaries		(86)		(122)		(120)
• Current tax		(89)		(128)		(110)
• Deferred tax		3		6		(10)
Total Income tax		(1,447)		(1,309)		(1,052)
• Current tax		(1,093)		(1,112)		(859)
• Deferred tax		(354)		(197)		(193)

Effective income tax on continuing operations


(in millions of euros)		Note		2019		2018		2017
Profit before tax of continuing operations				4,673		3,467		3,063
Statutory tax rate in France				34.43	%	34.43	%	34.43	%
Theoretical income tax				(1,609)		(1,194)		(1,055)
Reconciling items :
Exceptional surtax⁽¹⁾				—		—		(78)
Impairment of goodwill ⁽²⁾		7.1		(19)		(19)		(7)
Impairment of BT shares		12.7		(34)		(30)		(156)
Share of profits (losses) of associates and joint ventures				3		1		2
Adjustment of prior-year taxes				10		23		37
Recognition / (derecognition) of deferred tax assets				(36)		(151)		(27)
Difference in tax rates ⁽³⁾				192		189		92
Change in applicable tax rates ⁽⁴⁾				43		(84)		(50)
Other reconciling items ⁽⁵⁾				3		(44)		190
Effective income tax				(1,447)		(1,309)		(1,052)
Effective tax rate				30.97	%	37.75	%	34.35	%

(1)	Effect of the exceptional surtax put in place in France for 2017 which increased the corporate tax rate from 34.43% to 44.43%.

(2)	Reconciliation item calculated based on the tax rate applicable to the parent company of the Group. The difference between the tax rate of the parent company and the local tax rate of subsidiaries is presented below in "Difference in tax rates".

(3)	The Group is present in jurisdictions in which tax rates are different from the French tax rate. This mainly includes the United Kingdom (tax rate of 19%) and Spain (tax rate of 25%).

(4)	Takes into account the remeasurement of the deferred tax due to change of tax rate in tax legislation. It also takes into account the impact of the fact that some deferred tax are booked with a different tax rate than the on-going one.

(5)	Notably includes the non-deductible interests in France, respectively an income tax expense of 78 and 80 million euros in 2018 and 2017.

Includes the tax income of 304 million euros resulting from the dispute over the 3% tax on dividends in 2017.

Corporate income tax on other comprehensive income


(in millions of euros)		2019				2018				2017
		Gross		Deferred		Gross		Deferred		Gross		Deferred
		amount		tax		amount		tax		amount		tax
Actuarial gains and losses on post-employment benefits ⁽¹⁾		(109)		30		45		(6)		16		(23)
Assets available for sale		—		—		—		—		23		—
Assets at fair value		(16)		—		(30)		—		—		—
Cash flow hedges		144		(47)		(67)		18		49		(20)
Translation adjustment		78		—		(7)		—		(176)		26
Other comprehensive income of associates and joint ventures		—		—		—		—		(9)		—
Total presented in other comprehensive income		97		(17)		(59)		12		(97)		(17)

(1)	In 2017, the deferred tax includes the remeasurement of the deferred tax in France.

Tax position in the statement of financial position


(in millions of euros)		December 31, 2019						December 31, 2018						December 31, 2017
		Assets		Liabi-lities		Net		Assets		Liabi-lities		Net		Assets		Liabi-lities		Net
Orange SA tax group
• Current tax		—		385		(385)		—		438		(438)		—		288		(288)
• Deferred tax ⁽¹⁾		633		—		633		977		—		977		1,059		—		1,059
Spanish tax group
• Current tax		—		32		(32)		—		4		(4)		53		—		53
• Deferred tax ⁽²⁾		11		—		11		50		—		50		149		—		149
Africa & Middle East
• Current tax		43		212		(168)		32		182		(150)		25		189		(164)
• Deferred tax		92		55		37		84		42		42		99		54		45
United Kingdom
• Current tax		—		30		(30)		—		34		(34)		—		22		(22)
• Deferred tax ⁽³⁾		1		539		(538)		—		531		(531)		—		531		(531)
Other subsidiaries
• Current tax		76		90		(14)		87		97		(10)		54		97		(43)
• Deferred tax		255		108		147		255		58		197		279		70		209
Total
• Current tax		120		748		(629)		119		755		(636)		132		596		(464)
• Deferred tax		992		703		289		1,366		631		735		1,586		655		931

(1)	Mainly includes deferred tax assets on employee benefits.

(2)	The recognized deferred tax assets are partially offset by the deferred tax liabilities on the goodwill which is tax deductible.

(3)	Mainly deferred tax liabilities on the Orange brand.

Change in net current tax


(in millions of euros)		2019		2018		2017
Net current tax assets / (liabilities) in the opening balance		(636)		(464)		(168)
Cash tax payments ⁽¹⁾		1,079		928		583
Change in income statement ⁽²⁾		(1,093)		(1,116)		(859)
Change in other comprehensive income		—		—		—
Change in retained earnings ⁽³⁾		48		—		(11)
Changes in the scope of consolidation		(1)		19		0
Translation adjustment		(1)		(3)		5
Reclassification and other items		(24)		(0)		(14)
Reclassification to assets held for sale		—		—		—
Net current tax assets / (liabilities) in the closing balance		(629)		(636)		(464)

(1)	Includes in 2017 the reimbursement of 304 million euros due to the dispute of the 3% tax on dividends.

(2)	Of which 0 million euros in consolidated net income of discontinued operations in 2019 (4) million euros in 2018 and 0 million euros in 2017).

(3)	Mainly corresponds to the tax effect relating to the remeasurement of the portion of subordinated notes denominated in foreign currency.

Change in net deferred tax


(in millions of euros)		2019		2018		2017
Net deferred tax assets in the opening balance		735		931		1,141
Change in income statement ⁽¹⁾		(354)		(197)		(210)
Change in other comprehensive income		(17)		12		(17)
Change in retained earnings ⁽²⁾		4		—		(8)
Change in the scope of consolidation		(76)		(10)		0
Translation adjustment		0		(7)		11
Reclassification and other items		(3)		6		14
Reclassification to assets held for sale		—		—		—
Net deferred tax assets in the closing balance		289		735		931

(1)	Of which 0 million euros in consolidated net income of discontinued operations in 2019 (0 million euros in 2018 and (17) million euros in 2017).

(2)	Mainly corresponds in 2017 to the tax effect relating to the remeasurement of the portion of subordinated notes denominated in foreign currency.

Deferred tax assets and liabilities by type


(in millions of euros)		December 31, 2019						December 31, 2018						December 31, 2017
						Income						Income						Income
		Assets		Liabilities		state-ment		Assets		Liabilities		state-ment		Assets		Liabilities		state-ment
Provisions for employee benefit obligations		704		—		(169)		833		—		(25)		842		—		(132)
Fixed assets		614		1,216		(68)		721		1,123		(26)		790		1,139		(38)
Tax losses carryforward		3,895		—		8		3,914		—		(105)		4,011		—		(456)
Other temporary differences		2,700		2,746		(83)		1,245		1,146		(42)		1,538		1,407		(34)
Deferred tax		7,913		3,963		(313)		6,713		2,269		(198)		7,181		2,546		(660)
Depreciation of deferred tax assets		(3,661)		—		(41)		(3,709)		—		1		(3,704)		—		450
Netting		(3,260)		(3,260)		—		(1,638)		(1,638)		—		(1,891)		(1,891)		—
Total		992		703		(354)		1,366		631		(197)		1,586		655		(210)