SECTION 1 -

Note 10.2. Effective tax rate
New Services: Historical Combined Financial Statements and Notes
December, 31, 2009
(in € millions) 2007 2008 2009
Operating profit before tax (a) 303 348 101
Non-deductible impairment losses 18 (13) 125
Elimination of intercompany capital gains -
-
-
Other 4 4
8
Total permanent differences (non-deductible expense) (b) 22 (9) 133
Untaxed profit and profit taxed at a reduced rate (c) (4) 12 29
Profit taxable at the standard rate (d) = (a) + (b) + (c) 321 351 263
Standard tax rate in France (e) 34,43% 34,43% 34,43%
Theoretical tax at standard rate (f) = (d) x (e) (111) (121) (91)
Adjustments for:
. Differences in foreign tax rates 15 18 15
. Unrecognized tax losses for the period (3) (3) (3)
. Utilization of tax loss carryforwards -
-
1
. Effect of changes in future tax rates 4 1 -
. Charges to/reversals of provisions for tax risks 13 -
-
. Technical transfers between New Services entities and Accor S.A. (1) (1) -
. Financial transaction tax in Brazil and Argentina (11) -
-
. Other items (3) (5) (5)
Total adjustments (g) 14 10 8
Actual tax at standard rate (h) = (f) + (g) (97) (111) (83)
Tax at reduced rate (i) -
Income tax expense (j) = (h) + (i) (97) (111) (83)
Pre-tax operating profit taxed at standard rate 321 351 263
Income tax expense at standard rate (96) (103) (76)
Group effective tax rate 29,8% 29,3% 28,7%
192
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