29. Income taxes
Income taxes for the year, which amounted to €308 million (€357 million in 2015), can be broken down as follows:
| Download XLS (17 kB) |
|
2015 |
2016 |
||||||
(€ million) |
IRES |
IRAP |
Total |
IRES |
IRAP |
Total |
||
|
||||||||
Current taxes (*) |
361 |
65 |
426 |
287 |
61 |
348 |
||
Current taxes for the year |
362 |
66 |
428 |
285 |
61 |
346 |
||
Adjustments for current taxes relating to previous years |
(1) |
(1) |
(2) |
2 |
|
2 |
||
Deferred and prepaid taxes (*) |
(73) |
4 |
(69) |
(39) |
(1) |
(40) |
||
Deferred taxes |
(16) |
|
(16) |
(22) |
|
(22) |
||
Prepaid taxes |
(22) |
4 |
(18) |
(17) |
(1) |
(18) |
||
Adjustment to deferred taxes (IRES) pursuant to the 2016 Financial Stability Law |
(35) |
|
(35) |
|
|
|
||
|
288 |
69 |
357 |
248 |
60 |
308 |
||
Income taxes amounted to €308 million, consisting of €348 million in current taxes, which were partially offset by net prepaid taxes totalling €40 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:
| Download XLS (18 kB) |
|
2015 |
2016 |
||
(€ million) |
Tax rate |
Balance |
Tax rate |
Balance |
IRES |
|
|
|
|
Pre-tax profit |
|
1,255 |
|
899 |
|
|
|
|
|
IRES due, calculated based on the theoretical tax rate |
27.5% |
345 |
27.5% |
247 |
|
|
|
|
|
Changes to the theoretical rate: |
|
|
|
|
- Income from equity investments |
(2.3%) |
(29) |
(2.8%) |
(25) |
- Tax and dividends |
1,0% |
12 |
1.2% |
11 |
- Adjustment to deferred taxes (IRES) pursuant to the 2016 Financial Stability Law |
(2.8%) |
(35) |
|
|
- Other permanent differences |
(0.4%) |
(5) |
1.7% |
15 |
|
|
|
|
|
IRES due for the year recorded |
22.9% |
288 |
27.6% |
248 |
| Download XLS (18 kB) |
|
2015 |
2016 |
||
(€ million) |
Tax rate |
Balance |
Tax rate |
Balance |
IRAP |
|
|
|
|
|
|
|
|
|
Difference between value and production costs |
|
1,547 |
|
1,318 |
|
|
|
|
|
IRAP due, calculated based on the theoretical tax rate |
3.9% |
60 |
3.9% |
51 |
|
|
|
|
|
Changes to the theoretical rate |
|
|
|
|
Different IRAP rates |
0.3% |
4 |
0.2% |
3 |
Other permanent differences |
0.3% |
5 |
0.5% |
6 |
|
|
|
|
|
IRAP due for the year recorded in the Income statement |
4.5% |
69 |
4.6% |
60 |
An analysis of deferred and prepaid taxes based on the nature of the significant temporary differences that generated them can be found in Note 20 “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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|
2015 |
2016 |
||||
(€ million) |
Pre-tax value |
Tax effect |
Post-tax value |
Pre-tax value |
Tax effect |
Post-tax value |
- Remeasurement of defined-benefit plans for employees |
3 |
(1) |
2 |
(1) |
|
(1) |
- Portion of equity investments measured using the equity method pertaining to “other components of comprehensive income” |
11 |
|
11 |
(14) |
|
(14) |
- Change in fair value of cash flow hedge derivatives |
|
|
|
1 |
|
1 |
Other components of comprehensive income |
14 |
(1) |
13 |
(14) |
|
(14) |
Deferred/prepaid taxes |
|
(1) |
|
|
|
|