Income tax (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of the current and deferred portions of income tax expense included in the consolidated statements of operations

	For the year ended December 31,
	2015		2016		2017
	RMB		RMB		RMB

Current income tax expenses		(203,366)		(288,282)		(411,892)
Deferred income tax benefits (expenses)		25,039		7,768		(3,919)
Income tax expense for the year		(178,327)		(280,514)		(415,811)

Schedule of the reconciliation of total tax expense computed by applying the respective statutory income tax rate to pre-tax income

The reconciliation of total tax expense computed by applying the respective statutory income tax rate to pre-tax income is as follows:

	For the year ended December 31,
	2015			2016			2017

PRC Statutory income tax rate		(25.0)	%		(25.0)	%		(25.0)	%
Effect of preferential tax rate		14.0	%		11.6	%		13.2	%
Effect of tax-exempt entities		(1.6)	%		(1.7)	%		(0.3)	%
Effect of change in tax rate		0.5	%		-			-
Permanent differences (i)		(3.8)	%		(1.1)	%		(1.8)	%
Change in valuation allowance		(1.7)	%		(1.5)	%		(2.3)	%
Effect of Super Deduction available to the Group		2.3	%		2.0	%		1.8	%
Effective income tax rate		(15.3)	%		(15.7)	%		(14.4)	%

(i) Permanent differences mainly arise from expenses not deductible for tax purposes including primarily share-based compensation costs and expenses incurred by subsidiaries and VIEs.

Schedule of the tax effects of temporary differences that give rise to the deferred tax asset balances

	December 31,
	2016		2017
	RMB		RMB

Deferred tax assets:
Tax loss carried forward		66,816		74,951
Allowance for doubtful accounts receivable, accrued expense and others not currently deductible for tax purposes		65,721		62,177
Deferred revenue		57,284		97,858
Impairment of investment		7,949		12,783
Others		753		753
Valuation allowance (i)		(80,712)		(135,505)
Total deferred tax assets, net		117,811		113,017

Deferred tax liabilities:
Related to acquired intangible assets		3,281		2,406
Others		4,777		8,404
Total deferred tax liabilities, net		8,058		10,810

(i)

Valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group considered factors including future taxable income exclusive of reversing temporary differences and tax loss carry forwards. Valuation allowance was provided for net operating loss carry forward because it was more likely than not that such deferred tax assets would not be realized based on the Group’s estimate of its future taxable income. If events occur in the future that allow the Group to realize more of its deferred income tax than the presently recorded amounts, an adjustment to the valuation allowances will result in a decrease in tax expense when those events occur.

Schedule of the net operating tax loss carry forwards

	Amount
	RMB

2018		9,362
2019		14,323
2020		72,556
2021		69,190
2022		135,796
Total		301,227