23.2 Quantitative data

Reference Areas:
Best Pratices in PZU

Income tax1 January – 31 December 20171 January – 31 December 2016 (restated)
Profit before tax (consolidated)5,5262,988
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 seat1,050568
Differences between the income tax calculated above and the income tax shown in the profit and loss account:24346
- levy on financial institutions15675
- 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 assets55(58)
- recognition/reversal of impairment losses for receivables, not classified as tax- deductible expenses3937
- recognition/reversal of other provisions and impairment losses for assets, not classified as tax-deductible expenses2819
- prudence fee payable to BFG195
- change of tax law in Latvia(9)-
- differences due to different tax rates(3)(3)
- taxation of insurance activities in Ukraine64
- tax losses6-
- charges to PFRON42
- dividends(2)-
- depreciation and amortization21
- other tax increases, waivers, exemptions, deductions and reductions(51)26
Income tax shown in the profit and loss account1,293614
Total amount of current and deferred tax1 January – 31 December 20171 January – 31 December 2016
1. Recognized in the profit and loss account, including:1,293614
- current tax1,353787
- deferred tax(60)(173)
2. Recognized in other comprehensive income, including:31(39)
- deferred tax31(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.


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