Balance Sheet at 31 December 2010 of BBVA

directives and regulations and by Title VIII, Chapter VIII of Corporation Tax Act 43/1995 of 27 December.
The disclosures required under the aforementioned legislation are included in the notes to the financial
statements of the relevant entities for the period in which the transactions took place.
18.1. YEARS OPEN FOR REVIEW BY THE TAX AUTHORITIES
At the date these financial statements were prepared, the Bank had 2004 and subsequent years open for
review by the tax authorities for the main taxes applicable to it.
In 2008, as a result of the tax audits conducted by the tax authorities, tax assessments were issued against
the Bank for the years up to and including 2003, some of which were signed on a contested basis, which
became set in 2009.
After considering the temporary nature of certain of the items assessed, the amounts, if any, that might arise
from these assessments were provisioned in full in at 2010 year-end.
In view of the varying interpretations that can be made of the applicable tax legislation, the outcome of the
tax inspections of the open years that could be conducted by the tax authorities in the future could give rise
to contingent tax liabilities which cannot be objectively quantified at the present time. However, the Banks’
Board of Directors and its tax advisers consider that the possibility of these contingent liabilities becoming
actual liabilities is remote and, in any case, the tax charge which might arise therefore would not materially
affect the Bank’s financial statements.
18.2. RECONCILIATION
The reconciliation of the corporation tax expense resulting from the application of the standard tax rate to the
recognized corporation tax expense is as follows:
Millions of Euros
Reconciliation of the Corporate Tax Expense Resulting from the
Application of the Standard Rate and the Expense Registered by 2010 2009
this Tax
Corporation tax 1,024 1,034
Decreases due to permanent differences:
Tax credits and tax relief at consolidated Companies (277) (282)
Other items net (345) (374)
Net increases (decreases) due to temporary differences (209) 25
Charge for income tax and other taxes 193 403
Deferred tax assets and liabilities recorded (utilized) 209 (25)
Income tax and other taxes accrued in the period 402 378
Adjustments to prior years' income tax and other taxes 107 89
Income tax and other taxes 509 467
The Bank avails itself of the tax credits for investments in new fixed assets (in the scope of the Canary
Islands tax regime, for a non-material amount), tax relief, and training and double taxation tax credits, in
conformity with corporate income tax legislation.
The Bank and the acquired companies have opted to defer corporation tax on the gains on disposals of
tangible assets and shares in investees more than 5% owned by them, the breakdown of which by year is as
follows:
Year
Millions of Euros
1996 26
1997 150
1998 568
1999 117
2000 75
2001 731
74