SECTION 1 -

Note 10.2. Effective tax rate
New Services: Pro forma Financial Statements and Notes
December, 31, 2009
(in € millions) 2007 2008 2009
Operating profit before tax (a) 202 263 12
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) 220 266 174
Standard tax rate in France (e) 34,43% 34,43% 34,43%
Theoretical tax at standard rate (f) = (d) x (e) (76) (92) (60)
Adjus tm ents for:
. Differences in foreign tax rates 8 16 6
. 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. -
-
-
. Financial transaction tax in Brazil and Argentina (11) -
-
. Other items (3) (8) (6)
Total adjustments (g) 8 6 (2)
Actual tax at standard rate (h) = (f) + (g) (68) (86) (62)
Tax at reduced rate (i) -
Income tax expense (j) = (h) + (i) (68) (86) (62)
Pre-tax operating profit taxed at standard rate 220 266 174
Income tax expense at standard rate (67) (76) (54)
Group effective tax rate 30,5% 28,6% 31,0%
287
-
-