v3.25.4
Income taxes
 12 Months Ended
Dec. 31, 2025
Text Block1 [Abstract]  
Income taxes
12. Income taxes
Income taxes recognized in the income statement can be detailed as follows:
 
Million US dollar
   
2025
    
   2024
    
   2023
  
                          
Current year
   
 
(3 349
) 
  
 
(3 252
) 
  
 
(2 828
) 
(Underprovided)/overprovided in prior years
   
 
78
  
 
(211
) 
  
 
(95
) 
Current tax expense
   
 
(3 271
) 
  
 
(3 463
) 
  
 
(2 923
) 
                          
Origination and reversal of temporary differences
   
 
614
 
  
 
482
 
  
 
855
 
Recognition/(de-recognition) of deferred tax assets on tax losses (carried forward)
   
 
(193
) 
  
 
(171
) 
  
 
(166
) 
Deferred tax (expense)/income
   
 
420
 
  
 
311
 
  
 
689
 
                          
Total income tax expense in the income statement
   
 
(2 850
) 
  
 
(3 152
) 
  
 
(2 234
) 
The reconciliation of the effective tax rate with the aggregated weighted nominal tax rate can be summarized as follows:
 
Million US dollar
   
2025
     
   2024¹
     
   2023
1
  
                            
Profit/(loss) before tax
   
 
11 328
 
   
 
10 568
 
   
 
9 124
 
Deduct share of results of associates
   
 
378
 
   
 
329
 
   
 
295
 
Deduct exceptional share of results of associates
   
 
9
 
   
 
104
 
   
 
(35)
 
Profit before tax and before share of results of associates
   
 
10 941
 
   
 
10 134
 
   
 
8 864
 
                            
Adjustments to the tax basis
   
 
 
 
   
 
 
 
   
 
 
 
Government incentives
   
 
(149)
 
   
 
(376)
 
   
 
(756)
 
Non-deductible/(non-taxable) mark-to-market on derivatives
   
 
213
 
   
 
1 211
 
   
 
325
 
Other expenses not deductible for tax purposes
   
 
1 263
 
   
 
1 666
 
   
 
1 521
 
Other non-taxable income
   
 
(733)
 
   
 
(560)
 
   
 
(647)
 
                            
Adjusted tax basis
   
 
11 534
 
   
 
12 074
 
   
 
9 306
 
                            
Aggregate weighted nominal tax rate
   
 
26.9%
 
   
 
26.4%
 
   
 
27.5%
                            
Tax at aggregated nominal tax rate
   
 
(3 098)
 
   
 
(3 183)
 
   
 
(2 558)
                            
Adjustments on tax expense
   
 
 
 
   
 
 
 
   
 
 
 
Recognition/(de-recognition) of deferred tax assets on tax losses (carried forward)
   
 
(193)
 
   
 
(171)
 
   
 
(166)
 
(Underprovided)/overprovided in prior years
   
 
78
 
   
 
(211)
 
   
 
(95)
 
Deductions from interest on equity
   
 
252
 
   
 
240
 
   
 
781
 
Deductions from goodwill and other tax deductions
   
 
642
 
   
 
723
 
   
 
466
 
Change in tax rate
   
 
28
 
   
 
10
 
   
 
2
 
Withholding taxes
   
 
(509)
 
   
 
(497)
 
   
 
(559)
 
Other tax adjustments
   
 
(49)
 
   
 
(62)
 
   
 
(105)
 
                            
Total tax expense
   
 
(2 850)
 
   
 
(3 152)
 
   
 
(2 234)
 
                            
Effective tax rate
   
 
26.1%
     
 
31.1%
     
 
25.2%
  
The total income tax expense for 2025 amounted to (2 850)m US dollar compared to (3 152)m US dollar for 2024, and (2 234)m US dollar for 2023. The effective tax rate was 26.1% for 2025 compared to 31.1% for 2024 and 25.2% for 2023.
The 2023, 2024 and 2025 effective tax rates were negatively impacted by non-deductible losses from derivatives related to hedging of share-based payment programs and hedging of the shares issued in a transaction related to the combination with Grupo Modelo and SAB. Furthermore, the 2025 effective tax rate included 156m US dollar of exceptional tax income, mainly reflecting 66m US dollar exceptional tax income resulting from the renegotiation of the terms of the 2017 Brazilian Federal Tax Regularization Program and the tax income on exceptional items. In comparison, the 2024 effective tax rate included (205)m US dollar exceptional tax expense, reflecting mainly the net impact of a (240)m US dollar (4.5 billion South African rand) resolution of South African tax matters, the income tax on exceptional items and the release of tax provisions (refer to Note 8
Exceptional items
).
 
 
1
Amended to conform to the 2025 presentation.
 
Effective 1 January 2024, the company and its subsidiaries are within the scope of the OECD Pillar Two model rules either based on the adoption of Pillar Two legislation by Belgium, the jurisdiction in which the parent entity is incorporated, or by other jurisdictions where the company operates. The company assessed the impact for 2024 and 2025 and concluded the impact to be not material.
The company benefits from tax exempted income and tax credits which are expected to continue in the future. The company does not have significant benefits coming from low tax rates in any particular jurisdiction.
Income taxes were directly recognized in other comprehensive income as follows:
 
Million US dollar
   
2025
     
   2024
     
   2023
  
                            
Re-measurements of post-employment benefits
   
 
(22)
 
   
 
(48)
 
   
 
(13)
 
Exchange differences, cash flow and net investment hedges
   
 
(16)
 
   
 
10
 
   
 
(41)
 
Income tax (losses)/gains
   
 
(38)
 
   
 
(38)
 
   
 
(54)