Summary of Taxation Charge |
| | | | | | | | | | | | | $ million | | 2024 | 2023 | 2022 | Current tax: | | | | Charge in respect of current period | 13,648 | 13,066 | 16,383 | Adjustments in respect of prior periods | 58 | (422) | (947) | Total | 13,706 | 12,644 | 15,436 | Deferred tax: | | | | Relating to the origination and reversal of temporary differences, tax losses and credits | (491) | (305) | 5,196 | Relating to changes in tax rates and legislation | 112 | 242 | 785 | Adjustments in respect of prior periods | 74 | 410 | 524 | Total | (305) | 347 | 6,505 | Total taxation charge | 13,401 | 12,991 | 21,941 |
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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 | | 2024 | 2023 | 2022 | Income before taxation | 29,922 | 32,627 | 64,815 | Less: share of profit of joint ventures and associates | (2,993) | (3,725) | (3,972) | Income before taxation and share of profit of joint ventures and associates | 26,929 | 28,902 | 60,843 | Applicable tax charge at standard statutory tax rates | 11,782 | 11,921 | 22,170 | Adjustments in respect of prior periods | 132 | (12) | (424) | Tax effects of: | | | | Expenses not deductible for tax purposes | 747 | 1,225 | 849 | Incentives for investment and development | (374) | (553) | (1,388) | Derecognition/(recognition) of deferred tax assets | 255 | 243 | (457) | Changes in tax rates and legislation | 112 | 242 | 785 | Income not subject to tax at standard statutory rates | 360 | (213) | 234 | Disposals | (134) | (113) | 39 | Exchange rate differences | (12) | 89 | (102) | Other reconciling items | 533 | 162 | 235 | Taxation charge | 13,401 | 12,991 | 21,941 | Weighted average of statutory tax rates [A] | 44% | 41% | 36% | Effective tax rate based on income before taxation [B] | 45% | 40% | 34% | Effective tax rate based on income before taxation excluding share of profit of joint ventures and associates [C] | 50% | 45% | 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.
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Summary of Deferred Tax |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ million | Deferred tax asset | Decommissioning and other provisions | | Property, plant and equipment | | Tax losses and credits carried forward | Retirement benefits | Other | Total | At January 1, 2024 | 7,577 | | 1,584 | | 4,280 | 1,750 | 4,432 | 19,623 | Credit/(charge) to income | 528 | | 254 | | (388) | — | 799 | 1,193 | Currency translation differences | (94) | | (7) | | (129) | (77) | (31) | (338) | Other comprehensive income | — | | — | | 33 | (162) | 46 | (83) | Other movements | (1,170) | | (17) | | (229) | 343 | (11) | (1,084) | At December 31, 2024 | 6,841 | | 1,814 | | 3,567 | 1,854 | 5,235 | 19,311 | Deferred tax liability | | | | | | | | | At January 1, 2024 | | | (21,996) | | | (2,880) | (3,640) | (28,516) | (Charge)/credit to income | | | (799) | | | (138) | 49 | (888) | Currency translation differences | | | 231 | | | 386 | 68 | 685 | Other comprehensive income | | | (2) | | | (267) | (15) | (284) | Other movements | | | 3,652 | | | (351) | (257) | 3,044 | At December 31, 2024 | | | (18,914) | | | (3,250) | (3,795) | (25,959) | Net deferred tax liability at December 31, 2024 | | | | | | | | (6,648) | Deferred tax asset/(liability) as presented in the balance sheet at December 31, 2024 | | | | | | | | | Deferred tax asset | | | | | | | | 6,857 | Deferred tax liability | | | | | | | | (13,505) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ million | Deferred tax asset | Decommissioning and other provisions | Property, plant and equipment | Tax losses and credits carried forward | Retirement benefits | Other | Total | At January 1, 2023 | 6,049 | 4,290 | 6,446 | 1,977 | 4,827 | 23,589 | (Charge)/credit to income | 61 | (680) | (2,025) | 27 | 557 | (2,060) | Currency translation differences | 89 | 18 | 66 | 28 | (11) | 190 | Other comprehensive income | — | — | (5) | 104 | 23 | 122 | Other movements | 1,378 | (2,044) | (202) | (386) | (964) | (2,218) | At December 31, 2023 | 7,577 | 1,584 | 4,280 | 1,750 | 4,432 | 19,623 | 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) | | 227 | — | 54 | Other comprehensive income | | (3) | | (90) | (3) | (96) | Other movements | | 889 | | 400 | 484 | 1,773 | At December 31, 2023 | | (21,996) | | (2,880) | (3,640) | (28,516) | Net deferred tax asset at December 31, 2023 | | | | | | (8,893) | Deferred tax asset/(liability) as presented in the balance sheet at December 31, 2023 | | | | | | | Deferred tax asset | | | | | | 6,454 | Deferred tax liability | | | | | | (15,347) |
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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, 2024 | | Dec 31, 2023 | | | | | | | Less than 1 year | | 375 | | | 1,496 | Between 1 and 5 years | | 1,318 | | | 1,475 | 5 years and later [A] | | 75,768 | | | 71,709 | Total | | 77,461 | | | 74,680 | | | | | | | | | | | | | | | | | | |
[A]Includes unrecognised losses for Petroleum Resource Rent Tax (PRRT) in Australia which, due to the annual augmentation, increased to $49,893 million as at the end of the most recent PRRT fiscal year, June 30, 2024 (June 30, 2023: $46,220 million).
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