5 NOTE 6. Income tax Accounting principles The income tax charge includes the current tax expense payable by each consolidated tax entity and the deferred tax expense. Deferred tax is calculated whenever there are temporary differences between the tax basis of assets and liabilities and their basis for consolidated accounting purposes, using the balance sheet liability method. The restatement of assets and liabilities relating to lease contracts results in the booking of deferred tax. Deferred tax includes irrecoverable taxation on estimated or confirmed dividends. Deferred tax is measured using the tax rate enacted at the closing date and which will also apply when the temporary differences reverse. Deferred tax assets generated by tax loss carryforwards are only recognised to the extent it is probable that the entities will be able to generate taxable profit against which they can be utilised. Under the French system of tax consolidation, the taxable profits of some French companies are offset when determining the overall tax charge, which is payable only by L’Oréal, the parent company of the tax Group. Tax consolidation systems also exist outside France. Uncertain tax positions are recorded in the balance sheet under Non-current tax liabilities . These correspond to an estimate of tax risks and litigation related to income tax for the various countries in which the Group operates. 6.1. Detailed breakdown of income tax €  millions 2021 2020 2019 Current tax 1,361.7 1,219.9 1,699.7 Deferred tax 83.6 -10.1 -42.5 INCOME TAX 1,445.4 1,209.8 1,657.2 6.2. Analysis of tax charge The income tax charge may be analysed as follows: € millions 2021 2020 2019 Profit from continuing operations before tax and associates 6,046.9 4,776.5 5,411.4 Theoretical tax rate 24.72% 26.37% 26.21% Expec ted tax charge 1,494.8 1,259.7 1,418.1 Impact of permanent differences 17.3 31.4 64.4 Impact of tax rate differences -74.3 -129.9 -161.6 Change in unrecognised deferred taxes 3.5 1.7 2.3 Effect of non-current tax liabilities (1) -11.9 108.2 346.7 Other (2) 16.0 -61.3 -12.7 GROUP TAX CHARGE 1,445.4 1,209.8 1,657.2 (1) Including, in 2019, a €262 million expense to cover an agreement made with the French tax administration regarding a disagreement over which French products in our business fall under the tax base for 2014-2018. (2) Including tax credits and taxes on dividend distributions. The expected tax charge reflects the sum of pre-tax profit for each country, multiplied by the normal taxation rate. The theoretical tax rate reflects the total expected tax charge as a percentage of pre-tax profit. The impact of any reduced tax rates existing in certain countries in addition to the normal tax rates is included on the line Impact of tax rate differences. L ’ ORÉAL I UNIVERS AL REGISTRATION DOCUMENT 2021 309 2021 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements