EN
PL
| Income tax | 1 January– 31 December 2016 | 1 January– 31 December 2015 |
|---|---|---|
| Gross profit (consolidated) | 3,031 | 2,944 |
| CIT rate (or range of rates) for the country of the registered office of the parent entity (%) | 19% | 19% |
| Income tax which would be calculated as the product of the gross book profit of the entities and the CIT rate for the country for the registered office of the parent entity | 576 | 559 |
| Differences between the income tax calculated above and the income tax recognized in the statement of profit or loss: | 38 | 42 |
| - financial institutions tax | 75 | |
| - profit from bargain acquisition of the core Business of Bank BPH | (96) | |
| - reserves for credit receivables in the part not covered by deferred tax | 26 | |
| - valuation of financial assets | (66) | 8 |
| - valuation of investment property | 1 | 3 |
| - created/reversed impairment losses on receivables not classified as tax deductible expenses | 37 | 12 |
| - other created/reversed provisions and impairment losses on assets, not classified as tax deductible expenses | 19 | 45 |
| - prudential fee to BGF | 5 | |
| - differences from different tax rates | (3) | (3) |
| - tax on insurance activities in Ukraine | 4 | 4 |
| - depreciation | 1 | 2 |
| - other tax increases, cancellations, exemptions, deductions and reductions | 35 | (29) |
| Income tax recognized in the statement of profit or loss | 614 | 601 |
| Total current and deferred tax | 1 January– 31 December 2016 | 1 January– 31 December 2015 |
| 1. Recognized in the statement of profit or loss, including: | 614 | 601 |
| - current tax | 787 | 483 |
| - deferred tax | (173) | 118 |
| 2. Recognized in other comprehensive income, including: | (39) | 3 |
| - current tax | - | - |
| - deferred tax | (39) | 3 |
Regulations concerning corporate income tax, personal income tax, value added tax and contributions to social security undergo relatively frequent changes. The current regulations contain ambiguities which result in a difference in opinions regarding their legal interpretation, both among various State authorities as well as between these authorities and enterprises. Tax and other settlements (e.g. regarding customs duty or foreign currency settlements) may be controlled by authorities authorized to impose high penalties, and additional liability amounts recognized during are to be paid with high interest. As a result, the level of tax risk in Poland, the Baltic states and Ukraine exceeds that of countries with more developed tax systems. In Poland tax returns are subject to control over a period of five years. Consequently, the amounts presented in consolidated financial statements may change at a later date, after they have been finally assessed by tax authorities.
