Income tax (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Major Components of Income Tax Expense

The major components of income tax expense for the years ended December 31, 2018, 2017 and 2016 are:


Recognised in profit or loss	2018			2017			2016
Current income tax
Current income tax charge		(2,315	)		(3,397	)		(555	)
Adjustments in respect of income tax, including income tax penalties and changes in uncertain income tax position		(2,962	)		(3,154	)		766

Deferred tax
Relating to origination and reversal of temporary differences		2,596			3,401			(5,104	)

Income tax expense reported in the consolidated statement of profit (loss) and other comprehensive income		(2,681	)		(3,150	)		(4,893	)

Schedule of Reconciliation Related to Income Tax Expense

The reconciliation between the income tax expense computed by applying the Russian enacted statutory tax rates to the income from continuing operations before tax and non-controlling interest, to the income tax expense reported in the consolidated financial statements is as follows:


	2018			2017			2016
Profit before tax from continuing operations		16,217			15,720			14,151

Income tax expense at statutory income tax rate of 20%		(3,243	)		(3,144	)		(2,830	)

Adjustments:
Adjustments in respect of income tax, including income tax penalties and changes in uncertain income tax position		(2,962	)		(3,154	)		766
Unrecognised current year tax losses and write-off of previously recognised asset on tax losses		4,008			4,783			513
Non-deductible expenses for tax purposes		(3,625	)		(1,755	)		(1,317	)
Non-deductible interest expense		(363	)		(254	)		(1,055	)
Effect of restructuring and expense related to fines and penalties on breach of covenants in credit agreements		3,460			112			(1,152	)
Effect of different tax rates		(12	)		262			182
Change in tax rate		56			—			—
At the effective income tax rate of 16.5% (20.0% in 2017, 34.6% in 2016) income tax expense reported in the consolidated statement of profit (loss) and other comprehensive income		(2,681	)		(3,150	)		(4,893	)

Schedule of Deferred Tax Assets and Liabilities

The amounts reported in the accompanying consolidated financial statements consisted of the following:


	January 1, 2016			Tax (expense) benefit during the period recognised in profit or loss			Foreign currency translation effect			December 31, 2016
Deferred tax assets
Property, plant and equipment		1,055			(378	)		—			677
Rehabilitation provision		510			184			—			694
Inventory		73			134			(14	)		193
Trade and other receivables		1,112			(253	)		(28	)		831
Loans and borrowings		224			(106	)		—			118
Finance lease liabilities		1,508			(389	)		2			1,121
Trade and other payables and other liabilities		763			(70	)		7			700
Net operating loss carry-forwards		10,611			(5,807	)		(89	)		4,715
Other		324			(264	)		(1	)		59

Deferred tax liabilities
Property, plant and equipment		(16,199	)		497			37			(15,665	)
Mineral licenses		(7,701	)		485			—			(7,216	)
Inventory		(604	)		(83	)		3			(684	)
Trade and other receivables		(224	)		100			—			(124	)
Loans and borrowings		(454	)		350			1			(103	)
Trade and other payables and other liabilities		(596	)		496			4			(96	)

Deferred tax assets (liabilities), net		(9,598	)		(5,104	)		(78	)		(14,780	)


	January 1, 2017			Tax benefit (expense) during the period recognised in profit or loss			Foreign currency translation effect			December 31, 2017
Deferred tax assets
Property, plant and equipment		677			81			1			759
Rehabilitation provision		694			108			—			802
Inventory		193			(9	)		(5	)		179
Trade and other receivables		831			(92	)		(4	)		735
Loans and borrowings		118			195			—			313
Finance lease liabilities		1,121			(138	)		—			983
Trade and other payables and other liabilities		700			(31	)		(13	)		656
Net operating loss carry-forwards		4,715			3,248			9			7,972
Other		59			26			1			86

Deferred tax liabilities
Property, plant and equipment		(15,665	)		(193	)		(11	)		(15,869	)
Mineral licenses		(7,216	)		564			—			(6,652	)
Inventory		(684	)		(117	)		—			(801	)
Trade and other receivables		(124	)		(207	)		1			(330	)
Loans and borrowings		(103	)		(9	)		—			(112	)
Trade and other payables and other liabilities		(96	)		(25	)		2			(119	)

Deferred tax assets (liabilities), net		(14,780	)		3,401			(19	)		(11,398	)


	January 1, 2018			Adjustment on initial application of IFRS 9		As of January 1, 2018 adjusted for the effect of IFRS 9			Tax (expense) benefit during the period recognised in profit or loss			Foreign currency translation effect			December 31, 2018
Deferred tax assets
Property, plant and equipment		759			—		759			(373	)		—			386
Rehabilitation provision		802			—		802			(29	)		—			773
Inventory		179			—		179			1,537			—			1,716
Trade and other receivables		735			—		735			52			3			790
Loans and borrowings		313			822		1,135			(815	)		—			320
Finance lease liabilities		983			—		983			(141	)		1			843
Trade and other payables and other liabilities		656			—		656			213			—			869
Net operating loss carry-forwards		7,972			—		7,972			5,646			5			13,623
Other		86			—		86			(15	)		3			74

Deferred tax liabilities
Property, plant and equipment		(15,869	)		—		(15,869	)		429			(28	)		(15,468	)
Mineral licenses		(6,652	)		—		(6,652	)		276			—			(6,376	)
Inventory		(801	)		—		(801	)		(28	)		(5	)		(834	)
Trade and other receivables		(330	)		—		(330	)		(160	)		(9	)		(499	)
Loans and borrowings		(112	)		50		(62	)		(3,835	)		(1	)		(3,898	)
Trade and other payables and other liabilities		(119	)		—		(119	)		(161	)		(57	)		(337	)

Deferred tax assets (liabilities), net		(11,398	)		872		(10,526	)		2,596			(88	)		(8,018	)

Schedule of Deferred Tax Assets and Liabilities Recognized

Recognised in the consolidated statement of financial position:


	December 31, 2018			December 31, 2017
Deferred tax assets		5,488			96
Deferred tax liabilities		(13,506	)		(11,494	)

Deferred tax liabilities, net		(8,018	)		(11,398	)