IBERSOL | Annual Report 2021

ANNUAL REPORT 2021 27. INCOME TAX Income tax recognised in 2021 and 2020 are broken down as follows: 2021 2020 Current taxes 736 389 554 076 Insufficiency (excess) of income tax -224 427 -17 293 Deferred taxes 3 389 070 -15 678 777 3 901 032 -15 141 994 The group’s income tax prior to taxes is not the same as the theoretical amount that would result from applying the mean weighted income tax rate to the consolidated profit, as follows: 2021 2020 Pre-tax profit 35 238 181 -70 449 203 Tax calculated at the appliacble tax rate in Portugal (22,5%) 7 928 591 -15 851 071 Fiscal effect caused by: Tax losses without deferred tax 728 642 4 922 780 Tax credits/tax incentives in the year -4 368 239 -3 318 223 Insufficiency (excess) of income tax -224 427 -17 293 Tax pours 191 864 38 375 Special tax (independent) 311 578 401 131 Deferred tax adjustments and other effects -666 976 -1 317 693 Income Tax Expenses 3 901 032 -15 141 994 As at 31st December 2021 the effective tax rate is 11% (21% in 2020). 417