Danone // 2020 Universal Registration Document

4 125 DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 4.2 Financial statements of Danone SA, the parent company Note 8. Income tax NOTE 8. INCOME TAX Tax group The Company forms a tax group with the French subsidiaries in which it holds, directly or indirectly, a stake of more than 95%. Companies that were members of the tax group in 2020 As of December 31, 2020 BLEDINA HELDINVEST 9 COMPAGNIE GERVAIS DANONE HELDINVEST 11 DAN INVESTMENTS HELDINVEST 12 DANONE (a) HOLDING INTERNATIONALE DE BOISSONS DANONE CORPORATE FINANCE SERVICES LES PRES RIENT BIO DANONE DAIRY ASIA NUTRICIA NUTRITION CLINIQUE SAS DANONE FINANCE INTERNATIONAL PRODUITS LAITIERS FRAIS ESPAGNE DANONE MANIFESTO VENTURE EUROPE PRODUITS LAITIERS FRAIS EST EUROPE DANONE NUTRICIA AFRICA & OVERSEAS PRODUITS LAITIERS FRAIS SUD EUROPE DANONE PRODUITS FRAIS FRANCE SOCIÉTÉ ANONYME DES EAUX MINÉRALES D’ÉVIAN DANONE RESEARCH SOCIÉTÉ DES EAUX DE VOLVIC FERMINVEST (a) The Company. The subsidiaries that are members of the tax group recognize and pay their tax to the Company as if they were taxed separately, in compliance with the rules set by the French tax authorities. The tax savings (or additional charges) – based on the difference between the tax charges recorded by the different subsidiaries of the tax group and the tax charge resulting from the computation of the results of the tax group – are recognized in the income statement under Income tax. In 2020, the tax group recorded a taxable income. As of December 31, 2020, tax loss carry-forwards accumulated within the tax group in France amounted to €966 million, compared with €974 million as of December 31, 2019. Other information In accordance with Article 39.4 of the French Tax Code, in 2020 the Company recognized €0.4 million as taxable income in respect of passenger vehicle depreciation and rental. The application of Article 39.5 of the French Tax Code did not result in any add-backs to taxable income in 2020. As of December 31, 2020, items likely to result in a reduction of future tax liabilities consisted mainly of accrued charges and provisions. They totaled €39 million and would reduce future tax charges by €10 million.