Chapter 7Taxation

7.4Reconciliation of tax rates

	Group		Company
For the year ended 31 December	2024 Rm	2023 Rm	2024 Rm	2023 Rm
Tax as a percentage of profit before tax	19.1	18.0	0.1	0.1
Tax effect of:
Net capital losses		(0.1)		(0.1)
Impairments charges				(0.1)
ECLs on financial assets at amortised cost¹	(0.2)	(0.1)	(0.4)	(1.2)
Expenses not deductible for tax purposes²	(1.5)	(0.4)	(0.1)
Other deductible tax adjustments³	0.6	1.3	0.1	0.8
Exempt income⁴	0.1	0.1	27.0	27.5
Post-tax equity-accounted income	9.3	10.5
Prior year tax adjustments	(0.1)	(1.1)	0.3
Deferred tax assets not recognised	(0.2)	(0.8)
Re-instatement of deferred tax assets previously not recognised	0.3
Remeasurements of foreign normal tax	0.3	0.2
Dividend withholding tax		(0.2)
Global minimum top-up tax	(0.1)
Imputed income from controlled foreign companies and investments	(0.6)	(0.4)
Standard tax rate	27.0	27.0	27.0	27.0
Effective tax rate, excluding income from equity-accounted investments	29.1	29.5
¹ Relates to ECLs on loans which do not qualify for doubtful debt allowances (section 11(j)).
² Expenses not deductible for tax purposes:	(1.5)	(0.4)	(0.1)
Consulting, legal and other professional fees	(0.1)	(0.2)	(0.1)
Penalties and interest on taxes	(0.2)
Distribution to beneficiaries of Exxaro ESOP Trust and expenditure incurred by Exxaro Aga Setshaba NPC (tax exempt institutions)	(0.5)	(0.2)
Expenses incurred relating to non-trading entities	(0.3)
Other	(0.4)
³ Other deductible tax adjustments:	0.6	1.3	0.1	0.8
Share-based payments	0.3	0.6	0.2	0.9
Foreign tax credit	0.3	0.2
Other		0.5	(0.1)	(0.1)
⁴ Mainly relates to dividend income received.