v3.25.2
Taxation (Tables)
12 Months Ended
Dec. 31, 2023
Income Taxes [Abstract]  
Summary of Taxation Charge
$ million
202320222021
Current tax:
Charge in respect of current period13,06616,3837,254
Adjustments in respect of prior periods(422)(947)(719)
Total12,64415,4366,535
Deferred tax:
Relating to the origination and reversal of temporary differences, tax losses and credits(305)5,1962,971
Relating to changes in tax rates and legislation24278510
Adjustments in respect of prior periods410524(317)
Total3476,5052,664
Total taxation charge
12,99121,9419,199
Summary of Reconciliation of Applicable Tax Charge at Statutory Tax Rates to Taxation Charge
Reconciliation of applicable tax charge at statutory tax rates to taxation charge
$ million
202320222021
Income before taxation
32,62764,81529,829
Less: share of profit of joint ventures and associates(3,725)(3,972)(4,097)
Income before taxation and share of profit of joint ventures and associates
28,90260,84325,732
Applicable tax charge at standard statutory tax rates
11,92122,17010,097
Adjustments in respect of prior periods(12)(424)(1,036)
Tax effects of:
Expenses not deductible for tax purposes1,225849893
Incentives for investment and development(553)(1,388)(467)
Derecognition/(recognition) of deferred tax assets243(457)(113)
Changes in tax rates and legislation24278510
Income not subject to tax at standard statutory rates(213)23490
Disposals(113)39(328)
Exchange rate differences89(102)53
Other reconciling items162235
Taxation charge
12,99121,9419,199
Weighted average of statutory tax rates [A]41%36%39%
Effective tax rate based on income before taxation [B]40%34%31%
Effective tax rate based on income before taxation excluding share of profit of joint ventures and associates [C]45%36%36%
[A]The weighted average of statutory tax rates is calculated by dividing the applicable tax charge at standard statutory tax rates by Income before taxation and share of profit of joint ventures and associates.
[B]The effective tax rate based on income before taxation is calculated by dividing Taxation charge by Income before taxation.
[C]The effective tax rate based on income before taxation excluding share of profit of joint ventures and associates is calculated by dividing Taxation charge by Income before taxation and share of profit of joint ventures and associates.
Summary of Deferred Tax
$ million
Deferred tax assetDecommissioning
and other
provisions
Property,
plant and
equipment
Tax losses
and credits
carried forward
Retirement benefitsOtherTotal
At January 1, 20236,0494,2906,4461,9774,82723,589
(Charge)/credit to income61(680)(2,025)27557(2,060)
Currency translation differences89186628(11)190
Other comprehensive income(5)10423122
Other movements1,378
[A]
(2,044)
[A]
(202)(386)(964)(2,218)
At December 31, 20237,5771,5844,2801,7504,43219,623
Deferred tax liability
At January 1, 2023(24,818)(3,189)(3,953)(31,960)
Credit/(charge) to income
2,109(228)(168)1,713
Currency translation differences(173)22754
Other comprehensive income(3)(90)(3)(96)
Other movements
8894004841,773
At December 31, 2023(21,996)(2,880)(3,640)(28,516)
Net deferred tax liability at December 31, 2023(8,893)
Deferred tax asset/(liability) as presented in the balance sheet at December 31, 2023
Deferred tax asset6,454
Deferred tax liability(15,347)
[A]Includes the impact of the IAS 12 amendments Deferred Tax related to Assets and Liabilities arising from a Single Transaction. (See Note 2).
2022 – Deferred tax
$ million
Deferred tax assetDecommissioning
and other
provisions
Property,
plant and
equipment
Tax losses
and credits carried forward
Retirement benefitsOtherTotal
At January 1, 20226,5624,99310,5182,7444,54529,362
(Charge)/credit to income(217)(1,261)(3,434)(66)160(4,818)
Currency translation differences(303)(63)(426)(40)(109)(941)
Other comprehensive income18(618)70(530)
Other movements
7621(230)(43)161516
At December 31, 20226,0494,2906,4461,9774,82723,589
Deferred tax liability
At January 1, 2022(23,144)(2,736)(3,603)(29,483)
(Charge)/credit to income
(1,503)93(277)(1,687)
Currency translation differences380287170837
Other comprehensive income4(870)18(848)
Other movements
(555)37(261)(779)
At December 31, 2022(24,818)(3,189)(3,953)(31,960)
Net deferred tax asset at December 31, 2022(8,371)
Deferred tax asset/(liability) as presented in the balance sheet at December 31, 2022
Deferred tax asset7,815
Deferred tax liability(16,186)
Disclosure of unrecognised temporary difference, unused tax losses and tax credits
Expected expiration of unused tax losses, unrecognised deductible temporary differences and tax credits
$ million
Expected expiration
Dec 31, 2023Dec 31, 2022
Less than one year
1,4961,034
Between 1 and 5 years
1,4753,257
5 years and later [A]
71,70972,032
Total
74,68076,323
[A]Includes unrecognised losses for Petroleum Resource Rent Tax (PRRT) in Australia which, due to the annual augmentation, increased to $46,220 million as at the end of the most recent PRRT fiscal year, June 30, 2023 (June 30, 2022: $43,832 million).