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| Income tax | 1 January - 31 December 2015 | 1 January - 31 December 2014 |
| Gross profit (consolidated) | 2,943,733 | 3,691,693 |
| 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 | 559,309 | 701,422 |
| Differences between the income tax calculated above and the income tax recognized in the statement of profit or loss: | 42,228 | 22,644 |
| - tax losses | (681) | 1,474 |
| - fines, contractual penalties | 707 | 1,370 |
| - dividends | (2,124) | (3,182) |
| - valuation of financial assets | 7,814 | (13,018) |
| - valuation of investment property | 3,554 | 5,365 |
| - created/reversed impairment losses on receivables not classified as tax deductible expenses | 12,407 | (3,731) |
| - other created/reversed provisions and impairment losses on assets, not classified as tax deductible expenses | 45,301 | 18,865 |
| - differences from different tax rates | (3,321) | 255 |
| - tax on insurance activities in Ukraine | 3,761 | 4,015 |
| - depreciation | 1,701 | (524) |
| - other tax increases, cancellations, exemptions, deductions and reductions | (26,891) | 11,755 |
| Income tax recognized in the statement of profit or loss | 601,537 | 724,066 |
| Total current and deferred tax | 1 January - 31 December 2015 | 1 January - 31 December 2014 |
| 1. Recognized in the statement of profit or loss, including: | 601,537 | 724,066 |
| - current portion | 483,101 | 673,506 |
| - deferred tax | 118,436 | 50,560 |
| 2. Recognized in other comprehensive income, including: | 2,472 | 3,383 |
| - current portion | - | - |
| - deferred tax | 2,472 | 3,383 |
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.
In accordance with paragraph 25 section 1 of the Corporate Income Tax Act dated 15 February 1992 (i.e. Journal of Laws of 2014 (CIT Tax), item 851 as amended), the TCG conducts settlements with the Tax Office on a monthly basis. PZU makes advance payments of corporate income tax to the Tax Office, which are due from all the companies belonging to the TCG and the said companies transfer the CIT advances related to their business activities to PZU.
On 22 December 2015 the Management Board of PZU granted consent for the conclusion of an annex to the TCG agreement effective as of 1 January 2015. It is set forth in the annex signed on 21 January 2016 that should TCG’s income be reduced by a tax loss incurred by one or more companies constituting TCG, the amount of the difference between the amount of TCG’s tax due determined without taking tax losses into account and the amount of TCG’s tax due determined taking into account tax losses borne by the companies shall be transferred by PZU proportionally to each of the companies where the tax losses arose. Settlement is performed within 14 days from the submission of a CIT-8A declaration for the tax year in which the TCG’s tax liability was reduced.
