Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 561

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 561
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9 |   -825 |  -4.8 |
| –  effect of profits in associates and joint ventures                   |   -456 | -1.4 |   -571 | -1.9 |   -504 |  -3.1 |
| –  deductions for AT1 coupon payments                                   |   -249 | -0.8 |   -229 | -0.7 |   -246 |  -1.4 |
| –  adjustments in respect of prior period                               |    -46 | -0.1 |     16 |  0.1 |    116 |   0.7 |
| –  tax impact of sale of French retail banking business                 |    -15 |    — |      — |    — |    115 |   0.7 |
| –  accounting gain on acquisition of SVB UK                             |      — |    — |   -442 | -1.5 |      — |     — |
| Year ended 31 Dec                                                       |  7,310 | 22.6 |  5,789 | 19.1 |    809 |   4.7 |

The Group’s profits are taxed at different rates depending on the country or territory in which the profits arise. The key applicable tax rates for 2024 include Hong Kong ( 16.5% ), the US ( 21% ) and the UK ( 25% ). If the Group’s profits were taxed at the statutory rates of the countries in which the profits arose, then the tax rate for the year would have been 21.4% (2023: 22.6% ). The effective tax rate for the year of 22.6% was higher than in the previous year (2023: 19.1% ). The effective tax rate for the year was reduced by 3.6% by the non-taxable gain arising on the disposal of HSBC Canada, increased by 4.8% by the non-deductible loss arising on the disposal of HSBC Argentina , increased by 70.0% by movements in unrecognised deferred tax, primarily relating to French tax losses, and increased by 70.0% by the Group’s Pillar 2 Global Minimum Tax charge. The effective tax rate for 2023 was increased by 2.3% by the non-taxable impairment of the Group’s investment in BoCom, reduced by 1.6% by the release of