99
REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
Thousands of euros
2015
2014
Short term taxes payable
Income tax
15,545
15,412
Value Added Tax
8,509
1,763
Personal Income Tax
7,010
8,321
Tax on Income from Capital
217
90
Social Security
7,568
8,196
Others
11,986
6,312
Total
50,835
40,094
The movements in deferred tax liabilities during 2015 are as follows:
Thousands of euros
2015
2014
Opening balance
179,730
201,225
Derecognition of liabilities due to change in tax rate
(10,309)
(6,510)
Addition of liabilities due to entry into scope (Note 2.5.4)
26,077
(9,461)
Others
1,213
(5,524)
Closing balance
196,711
179,730
The settlement is mainly to the adaptation of tax liabilities related to Italian companies (IRES) associated with accounting revaluations at the
expected effective tax rate (see deferred tax assets movement).
The net increase in deferred tax liabilities is mainly due to the combined effect of the entry in the consolidation scope of the Grupo Royal and the
reversal of impairment of revalued assets.
The detail, by country and item, of these deferred taxes is as follows:
Thousands of euros
Tax credits
Prepaid Taxes
Total Assets
Liabilities
Spain
109,202
22,932
132,134
50,286
Italy
3,303
11,837
15,140
114,040
Germany
-
2,146
2,146
494
Others
1,880
14,496
16,377
31,891
TOTAL
114,385
51,411
165,797
196,711
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 2015 tax period
are subject to the tax consolidation scheme governed by Title VII, Chapter VI of Law 27/2014 on Corporate Income Tax.
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 2015, Hotel & Congress Technology, S.L. (previously Hotel & Travel Business, S.L.) were excluded from the Spanish tax consolidation 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 2015, Spanish companies pay taxes at the general tax rate of 28% 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. However, tax credits of Spanish tax group activated in the balance sheet are valued at 25%. 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.
