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