What was the statutory income tax rate for Bimbo Foods Bakeries Distribution in 2022?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Profit before income tax anddiscontinued | |||
| operations | $21,034 | $25,324 | $45,878 |
| (Loss)/profit before income taxfrom | |||
| Discontinuedoperations | (277) | (23) | 23,516 |
| Profit before income tax | 20,757 | 25,301 | 69,394 |
| Statutory income tax rate | 30% | 30% | 30% |
| Income tax at statutory tax rate | 6,227 | 7,591 | 20,818 |
Source: Item 14 — Other Accounts Payable and Accrued Liabilities (FDD pages 312–476)
What This Means (2025 FDD)
According to Bimbo Foods Bakeries Distribution's 2025 Franchise Disclosure Document, the statutory income tax rate for the company in 2022 was 30%. This rate is applicable to income tax in Mexico, where Bimbo Foods Bakeries Distribution is based.
It's important to note that while the statutory income tax rate provides a baseline, the actual income tax paid by Bimbo Foods Bakeries Distribution can vary due to several factors. These factors include inflationary effects, non-deductible expenses, non-taxable profits, tax incentives, and differences in tax rates and currency of subsidiaries operating in different tax jurisdictions. These elements can either increase or decrease the overall income tax liability, leading to an effective income tax rate that differs from the statutory rate.
For instance, the document shows that the effective income tax rate for Bimbo Foods Bakeries Distribution in 2022 was 30.1%, slightly higher than the statutory rate of 30%. This difference is attributed to the net effect of the various factors mentioned above. A prospective franchisee should understand that these adjustments are common in corporate taxation and can influence the company's financial performance.
Furthermore, the document mentions tax reforms and their potential impact on Grupo Bimbo, the parent company of Bimbo Foods Bakeries Distribution. While these reforms, such as the Global Anti-Base Erosion Model Rules, are not expected to have a material impact on the consolidated financial statements due to the application of safe harbor rules, it is essential for potential franchisees to stay informed about any future changes in tax legislation that could affect the company's profitability and financial stability.