5 _389 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 5 FINANCIAL PERFORMANCE 2023 consolidated financial statements Note 11. INCOME TAX (in € millions) 2023 2022 Current tax expense (note 18.2) (849) (625) Deferred tax benefit/(expense) (note 18.1) 342 (22) INCOME TAX (507) (647) Current tax includes €33 million of withholding tax on royalties and retained earnings distributed between Group companies (2022: €39 million). Current tax rose by €224 million in 2023. The Group's tax proof is presented in the table below: (in € millions) 2023 2022 Income before taxes 2,490 2,656 Tax calculated using domestic tax rates applicable to income in the respective countries (472) (556) Tax effect of: untaxed transactions (13) (52) deferred tax assets not recognized during the year (41) (47) net change in unrecognized deferred tax assets 11 43 changes in tax rates - (5) taxes with no tax base (tax credits, withholding tax, etc.) (2) (20) other items 10 (10) INCOME TAX (507) (647) Effective tax rate 20.4% 24.4% The Group has operations in various countries that have different tax laws and rates. The weighted average domestic tax rate of Group companies may therefore vary from year to year depending on the relative size of taxable incomes. In 2023, the effective tax rate stood at 20.4% (2022: 24.4%). The difference is due to unrecognized deferred tax assets in 2022 (primarily related to Russia) and the increase in profit from equity‑accounted companies in 2023. The difference between effective tax rates and theoretical rates (18.9%) is particularly due to unrecognized deferred tax assets, withholding taxes, tax credits and other taxes not based on income. The utilization of deferred tax assets is periodically reviewed at the tax entity level and may lead to the recognition of previously unrecognized deferred tax assets.
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