27 Income taxes
Income taxes (€328 million) break down as follows:
| Download XLS (22 kB) |
(€ million) |
First half 2013 |
First half 2014 |
Current taxes: |
|
|
- IRES |
304 |
318 |
- IRAP |
65 |
50 |
|
369 |
368 |
Deferred and prepaid taxes: |
|
|
- Deferred |
(36) |
(38) |
- Prepaid |
(2) |
(2) |
|
(38) |
(40) |
|
331 |
328 |
The impact of taxes on pre-tax profit for the period (tax rate) is 36.9% (41.7% in the first half of 2013) in view of the theoretical tax rate of 32% (33.6% in the first half of 2013), which is obtained by applying the statutory tax rate of 27.5% (IRES) to pre-tax profit and 3.5% (IRAP) to the net value of production.
The greater impact of tax compared with the theoretical rate is mainly due to application of the “Robin Hood Tax” (4.9 percentage points in the first half 2014).
The reduced tax rate in the period is mainly due to the cut in the Robin Hood tax from 1 January 2014 (6.5%; 10.5% until 31 December 2013) and, to a lesser extent, to the reduced IRAP effect from 1 January 2014 (3.5%; 3.9% until 31 December 2013).