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Tax Situation (Tables)
12 Months Ended
Dec. 31, 2017
Summary of Income Tax Expense
  e) The income tax expense shown in the consolidated income statement comprises:

 

     2015      2016      2017  

Current income tax

     135,036        169,428        167,154  

Deferred income tax (Note 25)

     2,222        (280,911      (44,730

PPUA

     (41,359      (7,789      613  
  

 

 

    

 

 

    

 

 

 

Income tax expense

     95,899        (119,272      123,037  
  

 

 

    

 

 

    

 

 

 
Summary of Weighted-Average Income Tax Rate Applicable To Profit


 

  f) The Group’s income tax differs from the theoretical amount that would have resulted from applying the weighted-average income tax rate applicable to the profit reported by of the consolidated companies, as follows:

 

     2015      2016      2017  

Profit (loss) before income tax

     142,446        (582,865      328,712  
  

 

 

    

 

 

    

 

 

 

Income tax by applying local applicable tax rates on profit generated in the respective countries

     51,503        (164,742      98,902  

Tax effect on:

        

Non-taxable income

     (31,266      (1,068      (7,281

- Equity method (profit) loss

     2,171        3,673        392  

Non-deductible expenses

     9,831        57,044        27,901  

- Unrecognized deferred tax asset income (expense)

     31,432        (4,535      1,562  

- Adjustment for changes in rates of income tax

     2,008        (17,105      (1,951

- PPUA adjustment for changes in tax rates

     15,296        4,871        (611

- Change in prior years estimations

     12,762        (181      12,200  

- Others, net

     2,162        2,771        (8,077
  

 

 

    

 

 

    

 

 

 

Income tax charge

     95,899        (119,272      123,037  
  

 

 

    

 

 

    

 

 

 

Summary of Weighted Average Pre-tax Profit or Loss and Applicable Income Tax Rate

 

  g) The theoretical tax disclosed resulted from applying the income tax rate stipulated in the tax laws of the country in which a Group company is legally resident. Accordingly, for fiscal 2017, companies that are legally resident in Peru, Chile and Colombia applied income tax rates of 29.5%, 25.5% and 40% respectively (28%, 24% and 40% for 2016; 28%, 22.5% and 39% for 2015). Norvial, GyM Ferrovías, Vesur and GMP (Blocks III and IV) have legal stability agreements with Peruvian Government, in force for all years preserved. In this sense, the consolidated theoretical amount is obtained as a weighted average pre-tax profit or loss and the applicable income tax.

RATES

 

Country

   Rates
Taxes
local
Applicable
    Utility
before the
Tax

to Rent
     Tax
to rent
 
     (A)     (B)      (A)*(B)  

2015

       

Perú

     28.00     174,432        48,841  

Perú - Norvial S.A.

     27.00     54,471        14,707  

Perú - GyM Ferrovías S.A.

     30.00     26,954        8,086  

Perú – Vesur

     30.00     2,336        701  

Perú – GMP S.A.

     30.00     15,007        4,502  

Chile

     22.50     (95,284      (21,439

Colombia

     39.00     40,900        15,951  

Bolivia

     25.00     (57,382      (14,345

Unrealized gains

       (6,818      (2,371
    

 

 

    

 

 

 

Total

       154,616        54,631  
    

 

 

    

 

 

 

2016

       

Perú

     28.00     (1,098,327      (307,532

Perú - Norvial S.A.

     27.00     63,583        17,167  

Perú - GyM Ferrovías S.A.

     30.00     34,760        10,428  

Perú – Vesur

     30.00     888        267  

Perú – GMP S.A.

     30.00     8,602        2,581  

Chile

     24.00     (86,151      (20,676

Colombia

     40.00     (25,555      (10,222

Bolivia

     25.00     (703      (176

Unrealized gains

       520,038        143,421  
    

 

 

    

 

 

 

Total

       (582,865      (164,742
    

 

 

    

 

 

 

2017

       

Perú

     29.50     730,980        215,639  

Perú - Norvial S.A.

     27.00     68,104        18,388  

Perú - GyM Ferrovías S.A.

     30.00     29,028        8,708  

Perú – Vesur

     30.00     779        234  

Perú – GMP S.A.

     29.00     20,941        6,073  

Chile

     25.50     (128,734      (32,827

Colombia

     40.00     (27,970      (11,188

Bolivia

     25.00     (2,897      (724

Unrealized gains

       (361,519      (105,401
    

 

 

    

 

 

 

Total

       328,712        98,902