What was the statutory income tax rate for Bimbo Foods Bakeries Distribution in 2024?
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 2024 was 30%. This rate is used as a baseline for calculating income tax before considering other factors that may increase or decrease the final income tax amount.
For a prospective franchisee, understanding the statutory income tax rate is crucial for financial planning and forecasting. It provides a benchmark against which to assess the company's overall tax burden and profitability. While the statutory rate offers a starting point, the actual effective income tax rate may vary due to items such as inflationary effects, non-deductible expenses, non-taxable profit, and differences in tax rates in different jurisdictions.
The document also indicates that the income tax at the statutory tax rate was $6,227 in 2024, based on a profit before income tax of $20,757. This demonstrates how the statutory rate is applied to the company's profit to arrive at a preliminary income tax figure. However, this figure is then adjusted to account for various tax effects, ultimately resulting in the actual income tax reported.
It's important to note that while the statutory rate remained consistent at 30% from 2022 to 2024, the effective income tax rate varied across these years. In 2024, the effective income tax rate was 32.34%. This difference highlights the impact of various tax adjustments and incentives on the company's final tax liability. Franchisees should be aware of these potential differences when evaluating the financial performance of Bimbo Foods Bakeries Distribution.