IBERSOL Annual Report and Consolidated Accounts 2017

ANNUAL REPORT 2017 28. INCOME TAX Income tax recognised in the years 2017 and 2016 are broken down as follows: Dec. 2017 Dec. 2016 Current taxes 2.124.336 5.730.030 Income tax provisions (Note 19) 1.182.596 1.200.166 Insufficiency (excess) of income tax -2.707.163 -1.254.493 Deferred taxes (Note 18) 2.101.820 161.850 2.701.589 5.837.553 The group’s income tax prior to taxes is not the same as the theoretical amount that would result from applying the mean weighted income tax rate to the consolidated profit, as follows: 2017 2016 Pre-tax profit 33.941.094 29.135.093 Tax calculated at the appliacble tax rate in Portugal (22,5%) 7.636.746 6.555.396 Fiscal effect caused by: Income tax provisions 1.182.596 1.200.166 Insufficiency (excess) of income tax -2.707.163 -1.254.493 Tax benefits (CFI) -3.021.307 -1.215.057 Deferred tax benefit -1.066.980 - Credit tax investment (CFEI) effects -7.483 -20.365 Special tax (independent) 357.463 275.580 Tax pours 149.654 136.934 Write-off deferred tax 21.407 8.237 Other effects 156.656 151.155 Income Tax Expenses 2.701.589 5.837.553 In 2017 and 2016, the income tax rate on profits was of 8% and 20%, respective- ly, lower than the nominal rate, mainly due to the tax benefits obtained under the terms of the Investment Tax Code (CFI), as in the “Decreto –Lei” no. 162/2014, of 31 October. 271