Income tax expense increased by CHF 48 million year-on-year, from CHF 271 million to CHF 319 million, corresponding to an effective income tax rate of 14.8% (prior year: 15.1%) The tax expense in 2021 was positively impacted by the low taxation of income from participations and the capitalisation of deferred tax assets in connection with a change in Italian tax laws. Swisscom anticipates a future effective consolidated tax rate of 19.5%. The CHF 30 million decrease in income taxes paid to CHF 279 million was mainly due to the difference between the expense recorded and the payment of income taxes due.
|In CHF million, except where indicated||Switzerland||Italy||Other countries||Total|
|2021 financial year|
|Income before income taxes||1,827||306||19||2,152|
|Income tax expense||339||(22)||2||319|
|Effective income tax rate||18.6%||–7.2%||10.5%||14.8%|
|Income taxes paid||264||15||–||279|
|2020 financial year|
|Income before income taxes||1,669||108||22||1,799|
|Income tax expense||242||25||4||271|
|Effective income tax rate||14.5%||23.1%||18.2%||15.1%|
|Income taxes paid||299||10||–||309|
Swisscom operates principally in Switzerland and Italy, so the information on income taxes is divided into Switzerland, Italy and other countries.