30. Income taxes
Income taxes for the year, which amounted to €467 million (€509 million in 2014), can be broken down as follows:
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|
2014 |
2015 |
||||
(€ million) |
IRES |
IRAP |
Total |
IRES |
IRAP |
Total |
Current taxes |
623 |
108 |
731 |
508 |
87 |
595 |
Current taxes for the year |
623 |
106 |
729 |
509 |
88 |
597 |
Adjustments for current taxes relating to previous years |
|
2 |
2 |
(1) |
(1) |
(2) |
Deferred and prepaid taxes |
(217) |
(5) |
(222) |
(132) |
4 |
(128) |
Deferred taxes |
(67) |
(1) |
(68) |
(51) |
(1) |
(52) |
Prepaid taxes |
(30) |
(4) |
(34) |
(24) |
5 |
(19) |
Adjustment to deferred taxes (IRES) pursuant to the 2016 Financial Stability Law |
|
|
|
(57) |
|
(57) |
Adjustment to deferred taxes (Robin Hood Tax) |
(120) |
|
(120) |
|
|
|
|
406 |
103 |
509 |
376 |
91 |
467 |
Income taxes amounted to €467 million, consisting of €595 million in current taxes, which were partially offset by net prepaid taxes totalling €128 million.
Deferred and prepaid taxes include the effects (totalling €57 million) of adjusting the IRES rate from 27.5% to 24% as at 1 January 2017.
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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|
2014 |
2015 |
||||
(€ million) |
Tax rate |
Balance |
Tax rate |
Balance |
||
|
||||||
IRES |
|
|
|
|
||
|
|
|
|
|
||
Pre-tax profit |
|
1,707 |
|
1,705 |
||
|
|
|
|
|
||
IRES due, calculated based on the theoretical tax rate |
27.5% |
469 |
27.5% |
469 |
||
|
|
|
|
|
||
Changes to the theoretical rate: |
|
|
|
|
||
- Adjustment to deferred taxes (IRES) pursuant to the 2016 Financial Stability Law |
|
|
(3.3%) |
(57) |
||
- Income from equity investments |
(2.1%) |
(36) |
(2.2%) |
(37) |
||
- Adjustment to deferred taxes (Robin Hood Tax) |
(7.0%) |
(120) |
|
|
||
- Impact of the application of the additional IRES (Robin Hood Tax) (Decree-Law 138/2011, converted into Law 148/2011) (*) |
5.1% |
87 |
|
|
||
- Other permanent differences |
0.4% |
6 |
0.1% |
1 |
||
|
|
|
|
|
||
IRES due for the year recorded on the income statement |
23.9% |
406 |
22.1% |
376 |
||
Other permanent differences (€1 million) refer mainly to taxes on dividends received, offset in part by the ACE (help for economic growth) benefit.
| Download XLS (23 kB) |
|
2014 |
2015 |
||
(€ million) |
Tax rate |
Balance |
Tax rate |
Balance |
IRAP |
|
|
|
|
|
|
|
|
|
Difference between value and production costs |
|
2,075 |
|
2,016 |
|
|
|
|
|
IRAP due, calculated based on the theoretical tax rate |
3.9% |
81 |
3.9% |
79 |
|
|
|
|
|
Changes to the theoretical rate: |
|
|
|
|
Personnel costs |
0.8% |
16 |
|
|
Other permanent differences |
0.3% |
6 |
0.6% |
12 |
|
|
|
|
|
IRAP due for the year recorded in the income statement |
5.0% |
103 |
4.5% |
91 |
Other permanent differences (€12 million) refer mainly to the different regional IRAP rates.
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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|
2014 |
2015 |
||||
(€ million) |
Pre-tax value |
Tax effect |
Post-tax value |
Pre-tax value |
Tax effect |
Post-tax value |
- Remeasurement of defined-benefit plans for employees |
(15) |
4 |
(11) |
6 |
(2) |
4 |
- Portion of equity-accounted investments pertaining to “other components of comprehensive income” |
6 |
|
6 |
11 |
|
11 |
- Change in fair value of cash flow hedge derivatives |
(3) |
1 |
(2) |
|
|
|
Other components of comprehensive income |
(12) |
5 |
(7) |
17 |
(2) |
15 |
Deferred/prepaid taxes |
|
5 |
|
|
(2) |
|