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Interactive navigation is a tool that goes beyond the standard navigation of the integrated content (available in the report drop-down bar). New approach allowed to navigate in the two additional business dimensions of the PZU Group, i.e .:
- strategy (insurance, health, investments, finances);
- sustainable development (sales, employees, social responsibility, natural environment and ethics).
The above-mentioned areas were additionally supplemented with related GRI indicators, within each selected issue.

24.2 Quantitative data

Annual Report 2018 > RESULTS 2018 > Supplementary Information and Notes > 24. Income tax > 24.2 Quantitative data
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Best Pratices in PZU

Income tax 1 January – 31 December 2018 1 January – 31 December 2017 (restated)
Profit before tax (consolidated) 7,086 5,474
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 1,346 1,040
Differences between the income tax calculated above and the income tax shown in the profit and loss account: 372 249
- levy on financial institutions 207 156
- provisions for credit receivables in the part not covered by deferred tax 19 14
- measurement of financial assets 6 55
- recognition/reversal of impairment losses for receivables, not classified as tax-deductible expenses 56 39
- recognition/reversal of other provisions and impairment losses for assets, not classified as tax-deductible expenses (21) 28
- prudence fee payable to BFG 71 23
- change of tax law in Latvia - (9)
- differences due to different tax rates (4) (3)
- taxation of insurance activities in Ukraine 5 6
- tax losses 12 6
- charges to PFRON 4 4
- dividends - (2)
- depreciation and amortization 2 2
- other tax increases, waivers, exemptions, deductions and reductions 15 (70)
Income tax shown in the profit and loss account 1,718 1,289

Total amount of current and deferred tax 1 January – 31 December 2018 1 January – 31 December 2017 (restated)
1. Recognized in the profit and loss account, including: 1,718 1,289
- current tax 2,098 1,363
- deferred tax (380) (74)
2. Recognized in other comprehensive income, including: (31) 31
- deferred tax (31) 31

Income tax on other comprehensive income items 1 January – 31 December 2018 1 January – 31 December 2017 (restated)
Gross other comprehensive income (129) 97
Income tax 31 (31)
Valuation of equity instruments measured at fair value through other comprehensive income 58 n/a
Valuation of debt instruments (28) n/a
Valuation of debt instruments reclassified to profit or loss 24 n/a
Transactions to hedge cash flows (23) n/a
Measurement of financial instruments available for sale n/a (28)
Other - (3)
Net other comprehensive income (98) 66

The PZU Group is comprised of units operating in different countries and subject to different tax regulations. Regulations governing value added tax, corporate income tax, personal income tax or contributions to social security undergo frequent changes. The regulations in effect in the countries where the PZU Group operates also contain confusing provisions, which result in differences of opinion concerning their legal interpretation between various state authorities and enterprises. Tax and other settlements (e.g. regarding customs or foreign currencies) may be inspected by authorities (in Poland – for a period of five years), which may levy high fines and any additional liabilities assessed during the inspection bear interest. These phenomena generate tax risk, as a result of which 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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