125 / 140
43
The detail of the taxes recognised directly in equity in 2014 is as follows:
Thousands of euros
Increase
Decrease
Total
Current taxes:
Capital increase expenses
Capital reduction expenses
Total current taxes
Deferred taxes:
Arising in the year:
Available-for-sale financial assets
Revaluation of other financial assets
Grants
Effect of first-time application of New Spanish
National Chart of Accounts
Arising in prior years:
Available-for-sale financial assets
Revaluation of other financial assets
Grants
-
571
(571)
Total deferred taxes
-
571
(571)
Total tax recognised directly in equity
(571)
16.4 Reconciliation of the accounting profit to the income tax expense
The reconciliation of the accounting profit to the income tax expense is as follows (in thousands of
euros):
2015
2014
Accounting profit before tax
107,649
87,130
Tax charge at 28%
30,141
26,139
Tax credits earned in the year:
Audiovisual productions
Donations to not-for-profit entities
Other
(6,297)
(6,112)
(185)
-
(11,425)
(11,342)
(83)
-
Offset of tax losses:
Other -
Permanent differences (Note 16.2)
(5,635)
(5,081)
Total income tax expense for the year
18,209
9,633
Income tax adjustments
Adjustment - difference in income tax per tax return
Adjustment - change in income tax rate
(63)
569
(632)
32,264
(1,242)
33,506
Total income tax expense recognised in profit or loss
18,146
41,897
The breakdown of the income tax expense for the year is as follows (in thousands of euros):
2015
2014
Current tax
8,384
902
Deferred tax
9,825
8,731
Total income tax expense for the year
18,209
9,633
Spanish Income Tax Law 27/2014, of 27 November, effective from 1 January 2015, established,
among other changes, a change in the income tax rate to 28% in 2015 and 25% in 2016 and
subsequent years.
In 2014 the Company made adjustments to bring the existing balance of deferred tax assets and
deferred tax liabilities -calculated in the past at a rate of 30%- into line with the recoverable
amount thereof calculated at 25%, based on the Company's best estimates of the recovery of tax
assets in future reporting periods.
The differences between the estimate made at year-end and the tax return effectively filed gave
rise to differences that not only affect the income tax expense, but also the adjustment arising
from the change in the tax rate, amounting to EUR 569 thousand and EUR (632) thousand,
respectively.