35 Income taxes
Income taxes (€690 million) break down as follows:
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|
(€ million) |
2012 |
2013 |
|
Current taxes: |
|
|
|
- IRES |
586 |
662 |
|
- IRAP |
140 |
131 |
|
|
726 |
793 |
|
Deferred and prepaid taxes: |
|
|
|
- Deferred |
(127) |
(87) |
|
- Prepaid |
(6) |
(16) |
|
|
(133) |
(103) |
|
|
|
|
|
|
593 |
690 |
Income taxes amounted to €690 million, comprised of €793 million in current taxes partially offset by net deferred tax assets totalling €103 million.
The impact of taxes on pre-tax profit for the period is 42.9% (43.2% in 2012) in view of the theoretical tax rate of 33.6% (34.7% in 2012), which is obtained by applying the statutory tax rate of 27.5% (IRES) to pre-tax profit and 3.9% (IRAP) to the net value of production.
The analysis of the difference between the theoretical and actual tax rates is as follows:
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|
% |
2012 |
2013 |
|
Theoretical rate |
34.7 |
33.6 |
|
Increases (decreases) in theoretical rate: |
|
|
|
- Impact of the application of the IRES Robin Hood Tax (Decree-Law 138/2011, converted into Law 148/2011) |
9.5 |
9.2 |
|
- Permanent differences and other factors |
(1.0) |
0.1 |
|
|
8.5 |
9.3 |
|
Effective rate |
43.2 |
42.9 |
Permanent differences and other factors include:
- increase: (i) 0.54 percentage points (€9 million) in the different rates of IRAP; (ii) 0.75 percentage points (€12 million) for the 5% tax on dividends received.
- decrease: (i) 0.56 percentage points (€9 million) in the valuation of equity investments using the equity method; (ii) 0.53 percentage points (€8 million) in the deduction for IRES purposes of 10% of IRAP (deduction in the financial year and refund requests relating to previous financial years).
The analysis of deferred and prepaid taxes, based on the nature of the most significant temporary differences, is given in Note 27 “Deferred tax liabilities”, to which we refer.