2019 Universal registration document and annual financial report - BNP PARIBAS 477

6information on the Parent ComPany finanCial statements at 31 deCemBer 2019

6

Notes to the parent company financial statements

2.g GAINS OR LOSSES ON DISPOSALS OF LONG-TERM INVESTMENTS

In millions of euros

Year to 31 Dec. 2019 Year to 31 Dec. 2018

Income Expenses Income Expenses

Investments in subsidiaries and equity securities held for long-term investment 80 (22) 295 (121)

Divestments 1 (19) 287 (1)

Provisions 79 (3) 8 (120)

Investments in affiliates 551 (175) 170 (751)

Divestments 274 (5) 79 (53)

Provisions 277 (170) 91 (698)

Operating assets 175 (34) 2 (3)

TOTAL 806 (231) 467 (875)

NET GAINS OR LOSSES ON DISPOSALS OF LONG-TERM INVESTMENTS 575 (408)

2.h CORPORATE INCOME TAX

In millions of euros Year to 31 Dec. 2019 Year to 31 Dec. 2018

Current tax expense (362) 506

Deferred tax 37 51

INCOME TAX (325) 557

The basic tax consolidation agreements between BNP Paribas SA and the subsidiaries belonging to its tax group are designed to be tax neutral for every party. Each Group subsidiary recognises in its own books, over the full term of its consolidation, corporate income tax income or expense, additional contributions and all current or future taxes covered by the scope of tax consolidation just as they would if they were not part of a tax group. BNP Paribas SA, as the parent company, records the impact of Group tax savings from tax consolidation in France in current tax expense.