23.2 Quantitative data
| Income tax | 1 January – 31 December 2017 | 1 January – 31 December 2016 (restated) |
| Profit before tax (consolidated) | 5,526 | 2,988 |
| CIT rate (or range of CIT rates) for the country of the parent company’s seat (%) | 19% | 19% |
| Income tax which would be calculated as the product of gross accounting profit of the entities and the CIT rate in the country of the parent company’s seat | 1,050 | 568 |
| Differences between the income tax calculated above and the income tax shown in the profit and loss account: | 243 | 46 |
| - levy on financial institutions | 156 | 75 |
| - gain on bargain purchase of Bank BPH’s Core Business | - | (88) |
| - provisions for credit receivables in the part not covered by deferred tax | (7) | 26 |
| - measurement of financial assets | 55 | (58) |
| - recognition/reversal of impairment losses for receivables, not classified as tax- deductible expenses | 39 | 37 |
| - recognition/reversal of other provisions and impairment losses for assets, not classified as tax-deductible expenses | 28 | 19 |
| - prudence fee payable to BFG | 19 | 5 |
| - change of tax law in Latvia | (9) | - |
| - differences due to different tax rates | (3) | (3) |
| - taxation of insurance activities in Ukraine | 6 | 4 |
| - tax losses | 6 | - |
| - charges to PFRON | 4 | 2 |
| - dividends | (2) | - |
| - depreciation and amortization | 2 | 1 |
| - other tax increases, waivers, exemptions, deductions and reductions | (51) | 26 |
| Income tax shown in the profit and loss account | 1,293 | 614 |
| Total amount of current and deferred tax | 1 January – 31 December 2017 | 1 January – 31 December 2016 |
| 1. Recognized in the profit and loss account, including: | 1,293 | 614 |
| - current tax | 1,353 | 787 |
| - deferred tax | (60) | (173) |
| 2. Recognized in other comprehensive income, including: | 31 | (39) |
| - deferred tax | 31 | (39) |
Regulations governing value added tax, corporate income tax, personal income tax or contributions to social security undergo frequent changes. The current regulations contain confusing provisions, which result in differences of opinion concerning their legal interpretation, both between various state authorities as well as between these authorities and enterprises. Tax and other settlements (e.g. regarding customs or foreign currencies) may be inspected by authorities, which may levy high fines and any additional liabilities assessed during the inspection bear interest. These facts create tax risks in Poland and Ukraine that are higher than those typically found in countries with more developed tax systems. In Poland, tax settlements may be audited over a period of five years. As a result, the amounts reported in the consolidated financial statements may change at a later date after the final amounts are determined by tax authorities.
