Company: SNY
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0001121404-25-000010
Chunk: 169

Company: Sanofi
Filing Date: 2025-02-13
Form: 20-F
Chunk 169
---
 Liquidity and Capital Resources” below and Note D.29. to our consolidated financial statements) was € 186 million in 2024 , compared with € 25 million in 2023 ; the rise of €161 was mainly explained by a lower level of income from short-term investments and deposits ( €413 million in 2024 versus €527 million in 2023, a decrease of €114 million). 13/ Income before tax and investments accounted for using the equity method Income before tax and investments accounted for using the equity method reached € 6,698 million in 2024 , versus € 6,251 million in 2023 . 14/ Income tax expense Income tax expense represented € 1,204 million in 2024 , versus € 1,017 million in 2023 , giving an effective tax rate based on consolidated net income of 18.0 % in 2024 , compared with 16.3 % in 2023 . The increase in the effective tax rate is mainly explained by an increase in the weighted average tax rate applicable across all the tax jurisdictions in which Sanofi operates (see Note D.30 to our consolidated financial statements), including additional tax recognized pursuant to the application of Pillar Two rules (€58 million in 2024). The effective tax rate based on business net income is a non-IFRS financial measure (see definition under “— Segment information — Business Net Income” above). It is calculated on the basis of business operating income, minus net financial expenses and before (i) the share of profit/loss from investments accounted for using the equity method and (ii) net income attributable to non-controlling interests. We believe the presentation of this measure, used by our management, is also useful for investors as it provides a means to analyze the effective cost of taxes on our profits excluding (i) the reconciling items described in section A.1.5. above and (ii) non-recurring or unusual tax effects. However, it should not be seen as a substitute for the effective tax rate based on our consolidated net income. When calculated on business net income, our effective tax rate was 19.8 % in 2024 , compared with 17.7% in 2023 . The main factors in this year-on-year change were (i) the impact of the OECD Pillar Two model rules, which aim to ensure that large multinationals pay a minimum level of tax on the income arising in each jurisdiction where they operate; and