95
The movements in deferred tax liabilities during 2014 are as follows:
€Thousand
2014
2013
Opening balance
201,225
233,939
Cancellation of liabilities due to change in tax rate
(6,510)
-
Cancellation of liabilities due to changes in scope (Note 9)
(9,461)
(8,915)
Others
(5,524)
(23,799)
Closing balance
179,730
201,225
The derecognitions in 2013 relate mainly to Sotogrande S.A. and its subsidiaries leaving the group, and the adaptation of tax liabilities associated
with accounting revaluations at the expected effective tax rate.
The detail, by country and item, of these deferred taxes is as follows:
€Thousand
Tax credits
Prepaid Taxes
Total Assets
Liabilities
Spain
99,436
36,390
135,826
50,640
Italy
5,277
6,947
12,224
119,022
Germany
-
3,229
3,229
673
Others
736
5,843
6,579
9,395
TOTAL
105,449
52,409
157,858
179,730
Corporate Income Tax expense
The Group operates in many countries and is therefore subject to the regulations of different tax jurisdictions regarding taxation and corporate
income tax.
NH Hotel Group, S.A. and the companies with tax domicile in Spain in which it held a direct or indirect stake of at least 75% during the 2014 tax
period are subject to the tax consolidation scheme governed by Title VII, Chapter VII of the Consolidated Text of the Corporate Tax Act, approved
by Royal Legislative Decree 4/2004 of 5 March.
The companies belonging to the tax group have signed an agreement to share the tax burden. Hence, the Parent Company settles any credits and
debts which arise with subsidiary companies due to the negative and positive tax bases these contribute to the tax group.
During 2014, Sotogrande, S.A., Resco Sotogrande, S.L. and Club Deportivo Sotogrande, S.A. were excluded from the Spanish tax consolidation group.
Coperama Spain, S.L. was included in the group.
Corporation tax is calculated on the financial or accounting profit or loss resulting from the application of generally accepted accounted standards
in each country, and does not necessarily coincide with the tax result, this being construed as the tax base.
In 2014, Spanish companies pay taxes at the general tax rate of 30% irrespective of whether they apply the consolidated or separate taxation
schemes. Following the approval of tax reform in Spain, the tax rates applicable to resident entities will be 28% in 2015 and 25% in 2016 and the
following years. The foreign companies are subject to the prevailing tax rate in the countries where they are domiciled. In addition, taxes are
recognised in some countries at the estimated minimum profit on a complementary basis to Corporation Tax.
The prevailing income tax rates in the different jurisdictions where the Group has significant operations are as follows:
Country
Nominal Rate
Country
Nominal Rate
Argentina (1)
35%
Romania
16%
Colombia (2)
-
Poland
19%
Chile
20%
Switzerland
7.80%
Panama
25%
Dominican Rep.
19%
Brazil
34%
Luxembourg
29.20%
Mexico
30%
Italy
31.70%
Uruguay
25%
Netherlands
25%
Dominican Republic
28%
France
33%
Germany
30%
Portugal
31.50%
(1) Jurisdictions in which there is a minimum taxable income.
(2) NH Parque de la 93, S.A.S., the Colombian company which operates a hotel in Bogotá, is exempt from Income Tax.
REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
