Notes to the consolidated financial statements (continued) 160 Vodafone Group Plc Annual Report 2024 2020 160 Vodafone Group Plc Annual Report 2024 Strategic report Governance
Financials
Other information
6. Taxation (continued) Tax (credited)/charged directly to other comprehensive income
Re-presented 1
Re-presented 1
2024 €m
2023 €m
2022 €m
Current tax Deferred tax
2
3
–
(579) (577)
305 308
638 638
Total tax (credited)/charged directly to other comprehensive income
Tax charged directly to equity
Re-presented 1
Re-presented 1
2024 €m
2023 €m
2022 €m
Deferred tax
4
7
–
Total tax charged directly to equity
4
7
–
Factors affecting the tax expense for the year The table below explains the differences between the expected tax expense, being the aggregate of the Group’s geographical split of profits multiplied by the relevant local tax rates and the Group’s total tax expense for each year. Re-presented 1 Re-presented 1 2024 2023 2022 €m €m €m Continuing profit before tax as shown in the consolidated income statement 1,620 13,074 4,149 Profit at weighted average statutory tax rate 363 2,787 1,298 Impairment loss with no tax effect – 18 – Disposal of Group investments 2 174 (1,718) (8) Effect of taxation of associates and joint ventures, reported within profit before tax 23 (125) (111) Deferred tax (credit)/charge following revaluation of investments in Luxembourg – (393) 1,455 Previously unrecognised temporary differences and losses we expect to use in the future 3 (1,021) (16) (708) Previously recognised temporary differences and losses we no longer expect to use in the future – – 74 Current year temporary differences (including losses) that we currently do not expect to use 84 81 28 Adjustments in respect of prior year tax liabilities 89 (29) 10 Impact of tax credits and irrecoverable taxes 147 80 73 Deferred tax on overseas earnings 1 (6) 2 Effect of current year changes in statutory tax rates on deferred tax balances 4 (19) 35 (667) Financing costs and similar not deductible/(taxable) for tax purposes 214 (27) 46 Revaluation of assets for tax purposes in Turkey and Italy 5 (65) (338) (84) Expenses not deductible for tax purposes 60 143 153 Income tax expense 50 492 1,561 Notes: 1 The results for the years ended 31 March 2023 and 31 March 2022 have been re-presented to reflect that the results of Vodafone Spain and Vodafone Italy are now reported as discontinued operations. See note 7 ‘Discontinued operations and assets held for sale’ for more information. 2 The amount for 2024 includes €110 million of tax relating to income of the continuing Group presented in Discontinued Operations, €37 million in relation to the disposal of M-Pesa Holding Company Limited and €30 million in relation to the Vantage Towers disposal. The amount for 2023 relates to the disposal of Vantage Towers into a joint venture and the tax exempt disposals of Vodafone Hungary and Vodafone Ghana. See note 27 ‘Acquisitions and disposals’. 3 The amount in 2024 includes €1,019 million of additional losses recognised in Luxembourg (see below). 4 The amount for 2022 includes the increase in future UK tax rate to 25%. 5 The amounts for 2024 and 2023 relate to inflation adjustments in Turkey. The amount for 2022 relates to step up of assets for tax purposes in Italy and Turkey.
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