What was the statutory income tax rate for Bimbo Foods Bakeries Distribution in 2023?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
lows:
| | 2024 | 2023 | 2022 | |--------------------------------------------------|--------------|--------------|--------------| | Profit before income tax and discontinued | | | | | operations | $ 21,034 | $ 25,324 | $ 45,878 | | (Loss)/profit before income tax from | | | | | Discontinued operations | (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 | | Plus/(less) tax effects of the following items: | | | | | Inflationary effects of monetary accounts in the | | | | | statement of financial position and statement | | | | | of profit or loss | 830 | 813 | 1,051 | | Non-deductible expenses and other | 631 | 965 | 1,508 | | Non-taxable profit and tax incentives | - | - | (356) | | Difference in tax rates and currency of | | | | | subsidiaries in different tax jurisdictions | (93) | (296) | (1,243) | | Effects on tax values of property, plant and | | | | | equipment | (700) | (600) | (807) | | Share of loss of associates | (139) | (95) | (136) | | Permanent effects of discontinued operations | - | - | (528) | | Unrecognized available tax loss carryforwards | (42) | 1 | 602 | | Income tax | $ 6,714 | $ 8,379 | $ 20,909 | | Effective income tax rate | 32.34% | 33.1% | 30.1% |
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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 2023 was 30%. This rate is also consistent for the years 2024 and 2022.
This means that 30% of Bimbo Foods Bakeries Distribution's profit before income tax was allocated to income tax at the statutory tax rate. Specifically, the profit before income tax for 2023 was $25,301, resulting in an income tax at the statutory tax rate of $7,591.
It's important to note that the effective income tax rate, which takes into account various tax effects, was 33.1% in 2023. This differs from the statutory rate due to factors such as inflationary effects, non-deductible expenses, and differences in tax rates in different jurisdictions. A prospective franchisee should be aware of both the statutory and effective tax rates when assessing the financial performance of Bimbo Foods Bakeries Distribution.