30 Income taxes
Income taxes for the year, which amounted to €509 million (€690 million in 2013), can be broken down as follows:
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|
(€ million) |
2013 |
2014 |
||||
|
|
IRES |
IRAP |
Total |
IRES |
IRAP |
Total |
|
Current taxes |
662 |
131 |
793 |
623 |
108 |
731 |
|
Current taxes for the year |
681 |
131 |
812 |
623 |
106 |
729 |
|
Adjustments for current taxes relating to previous years |
(19) |
|
(19) |
|
2 |
2 |
|
Deferred and prepaid taxes |
(79) |
(24) |
(103) |
(217) |
(5) |
(222) |
|
Deferred taxes |
(62) |
(25) |
(87) |
(67) |
(1) |
(68) |
|
Prepaid taxes |
(17) |
1 |
(16) |
(30) |
(4) |
(34) |
|
Adjustment to deferred taxes (Robin Hood Tax) |
|
|
|
(120) |
|
(120) |
|
|
583 |
107 |
690 |
406 |
103 |
509 |
Income taxes amounted to €509 million, consisting of €731 million in current taxes, which were partially offset by net deferred tax assets totalling €222 million.
The reconciliation of the theoretical tax charge (calculated by applying the corporation tax (IRES) and regional production tax (IRAP) rates in force in Italy) with the actual tax charge for the year can be broken down as follows:
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|
(€ million) |
2013 |
2014 |
||||
|
|
Tax rate |
Balance |
Tax rate |
Balance |
||
|
||||||
|
IRES |
|
|
|
|
||
|
Pre-tax net profit |
|
1,607 |
|
1,707 |
||
|
IRES due, calculated based on the theoretical tax rate |
27.5% |
442 |
27.5% |
469 |
||
|
Changes to the theoretical rate: |
|
|
|
|
||
|
- Adjustment to deferred taxes (Robin Hood Tax) |
|
|
(7.03%) |
(120) |
||
|
- Non-taxable profits |
(0.6%) |
(9) |
(1.64%) |
(28) |
||
|
- Impact of the application of the additional IRES (Robin Hood Tax) (Decree Law 138/2011, converted into Law 148/2011) (*) |
9.2% |
148 |
5.10% |
87 |
||
|
- Adjustments related to previous years |
(0.4%) |
(6) |
|
|
||
|
- Other permanent tax differences |
0.5% |
8 |
(0.12%) |
(2) |
||
|
IRES due for the year recorded on the income statement |
36.3% |
583 |
23.8% |
406 |
||
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|
(€ million) |
2013 |
2014 |
||
|
|
Tax rate |
Balance |
Tax rate |
Balance |
|
IRAP |
|
|
|
|
|
Difference between value and production costs |
|
2,127 |
|
2,075 |
|
IRAP due, calculated based on the theoretical tax rate |
3.9% |
83 |
3.9% |
81 |
|
Changes to the theoretical rate |
|
|
|
|
|
- Personnel costs not included in the difference between value and production costs |
0.7% |
15 |
0.7% |
14 |
|
- Other permanent differences |
0.4% |
9 |
0.4% |
8 |
|
IRAP due for the year recorded in the income statement |
5% |
107 |
4.96% |
103 |
An analysis of deferred and prepaid taxes based on the nature of the significant temporary differences that generated them can be found in Note 21 – “Deferred tax liabilities”.
Taxes related to components of comprehensive income
Current and deferred taxes related to other components of comprehensive income can be broken down as follows:
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|
(€ million) |
2013 |
2014 |
||||
|
|
Pre-tax value |
Tax effect |
Post-tax value |
Pre-tax value |
Tax effect |
Post-tax value |
|
- Remeasurement of defined-benefit plans for employees |
6 |
(2) |
4 |
(15) |
4 |
(11) |
|
- Portion of equity investments measured using the equity method pertaining to “other components of comprehensive income” |
(5) |
|
(5) |
6 |
|
6 |
|
- Change in fair value of cash flow hedge derivatives |
(1) |
|
(1) |
(3) |
1 |
(2) |
|
Other components of comprehensive income |
|
(2) |
(2) |
(12) |
5 |
(7) |
|
Deferred/prepaid taxes |
|
(2) |
|
|
5 |
|