Table:
|  | € million | € million |
| --- | --- | --- |
|  | 2019 | 2018 |
|  |  | (Restated)(a) |
| Taxation | 2,263 | 2,572 |
| Tax impact of: |  |  |
| Non-underlying items within operating profit(b) | 309 | (259) |
| Non-underlying items not in operating profit  Taxation before tax impact of non-underlying | (196) | (29) |
| Taxation before tax impact of non-underlying | 2,376 | 2,284 |
| Profit before taxation | 8,289 | 12,360 |
| Non-underlying items within operating profit before tax(b) | 1,239 | (3,176) |
| Non-underlying items not in operating profit but within net profit before tax(c) | (32) | (122) |
| Share of net (profit)/loss of joint ventures and associates | (176) | (185) |
| Profit before tax excluding non-underlying items before tax and share of net profit/ (loss) of joint ventures and associates | 9,320 | 8,877 |
| Underlying effective tax rate | 25.5% | 25.7% |
Paragraphs:
Underlying effective tax rate
The underlying effective tax rate is calculated by dividing taxation excluding the tax impact of non-underlying items by profit before tax excluding the impact of non-underlying items and share of net profit/(loss) of joint ventures and associates. This measure reflects the underlying tax rate in relation to profit before tax excluding non-underlying items before tax and share of net profit/(loss) of joint ventures and associates.
Tax impact on non-underlying items within operating profit is the sum of the tax on each non-underlying item, based on the applicable country tax rates and tax treatment. This is shown in the table:
(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.
(b) Refer to note 3 for further details on these items.
(c) Excludes €3 million (2018: €32 million) gain on disposal of spreads business by the joint venture in Portugal which is included in the share of net profit/(loss) of joint ventures and associates line. Including the gain, total non-underlying items not in operating profit but within net profit before tax is €35 million (2018: €154 million). See note 3.
Question:
How is the underlying effective tax rate calculated?
Answer: dividing taxation excluding the tax impact of non-underlying items by profit before tax excluding the impact of non-underlying items and share of net profit/(loss) of joint ventures and associates