UBI Banca Group

SECTION 20 Taxes on profit for the year from continuing operations –
Item 290
20.1 Taxes on profit for the year from continuing operations: composition
Income components/sectors 2011 2010
1. Current taxes (-) (702,119) (357,990)
2. Change in current taxes of prior years (+/-) 3,119 (2,800)
3. Reduction in current taxes for the year (+) - -
4. Change in deferred tax assets (+/-) 927,399 92,361
5. Change in deferred tax liabilities (+/-) 43,592 36,449
6. Taxes for the year (-) (-1+/-2+3+/-4+/-5) 271,991 (231,980)
Comments on changes in income taxes are given in balance sheet asset section 14.. 530
20.2 Reconciliation between theoretical taxation and actual taxation recorded in the
accounts
IRES (CORPORATE INCOM E TAX) Taxabl e income IRES %
Theoretical IRES payable 388,718 (106,897) 27.50%
Permanent increases
- Non deductible interest expense 74,052 (20,364) 5.24%
- Non deductible impairment losses on AFS securities 12,728 (3,500) 0.90%
- Taxes on dividends of UBI subsidiaries - (1,235) 0.32%
- Other minor impacts 22,426 (6,167) 1.59%
Permanent decreases
- Gains 95% PEX exempt (6,284) 1,877 -0.48%
- Untaxed dividends (18,997) 5,224 -1.34%
- Valuation of equity-accounted investees (9,947) 2,735 -0.70%
- Allowance for Corporate Equity (22,225) 6,112 -1.57%
Effective IRES payabl e 439,931 (122,215) 31.44%
IRAP [LOCAL PRODUCTION TAX] taxable income IRAP %
Theoretical IRAP payabl e 388,718 (21,652) 5.57%
Permanent increases
- Personnel expense + administrative expenses not deductible for IRAP purp 1,018,705 (56,742) 14.60%
- Non deductible impairment losses on AFS securities 0 0 0.00%
- Impairment of tangible and intangible assets not deductible for IRAP purpo 13,893 (774) 0.20%
- Net impairment losses on loans not deductible for IRAP purposes 608,239 (33,879) 8.72%
- Non deductible interest expense 64,997 (3,620) 0.93%
- Provisions for risks and charges not deductible for IRAP purposes 28,862 (1,608) 0.41%
- Non recoverable UBI IRAP loss IRAP (8,556) 2.20%
Permanent decreases
- Valuation of equity-accounted investees (9,947) 554 -0.14%
- Untaxed dividends (9,999) 557 -0.14%
- Other minor impacts (2,877) 160 -0.04%
Effective IRAP payabl e 2,100,592 (125,559) 32.30%
Total effective IRES and IRAP tax expense 388,718 (247,775) 63.74%
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