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B. Deferred tax assets and liabilities
Total
Fixed and
Intangible
Assets
Carried
forward
losses
Impairment
of Inventory
Warranty
Provision
Legal
Provision
Surplus
revaluation
of fixed assets
Foreign
exchange loss
December 31,
2017
December 31,
2016
Deferred tax assets
Balance at 1 January
11
9 872
7 455
20 019
-
-
121 998
159 357
40 640
Charged to the income statement
-
223 892
8 437
11 729
1 236
-
(121 998)
123 296
118 715
Balance at the end of the year
11
233 765
15 892
31 749
1 236
-
-
282 653
159 355
Deferred tax liabilities
Balance at 1 January
(103 226)
-
-
-
-
(61 163)
-
(164 389)
(82 9262)
Charged to the income statement
(10 245)
-
-
-
-
-
-
(10 245)
(20 300)
Charged to Statement of comprehen-
sive income
-
-
-
-
-
22 133
-
22 133
(61 163)
Balance at the end of the year
(113 471)
-
-
-
-
(39 030)
-
(152 501)
(164 389)
Net deferred tax liabilities
(113 482)
233 765
15 892
31 749
1 236
(39 030)
-
130 152
(5 034)
Net
Balance at 1 January
(103 215)
9 873
7 455
20 020
-
(61 163)
121 998
(5 034)
(42 286)
Charged to the income statement
(10 245)
223 892
8 437
11 729
1 236
-
(121 998)
113 051
98 415
Charged to Statement of comprehen-
sive income
-
-
-
-
22 133
-
22 133
(61 163)
Balance at the end of the year
(113 460)
233 765
15 892
31 749
1 236
(39 030)
-
130 152
(5 034)
Unrecognised deferred tax assets
•
Deferred tax assets have not been recognised in respect of the following items, because it is not probable that
future taxable profit will be available against which the group can use the benefits therefrom.
December 31,
2017
December 31,
2016
Impairment of accounts and notes receivables
94 746
85 439
Impairment of other debit balances
2 291
1 779
•
Liability for temporary differences related to investments in subsidiaries, associates and joint venture was not
recognized because the group controls the timing of reversal of the related temporary differences and satisfied
that they will not reverse in the foreseeable future.
C. Income tax expenses
December 31,
2017
December 31,
2016
Current income tax for the year (Note 9-A)
(84 977)
(100 835)
Deferred tax – benefit \ (expense) (Note 9-B)
113 051
(98 415)
Income tax for the yaer
28 074
(2 420)
D. Amounts recognized in OCI
December 31, 2017
December 31, 2016
Before
Tax Taxes After Tax
Before
Tax Taxes After Tax
Foreign Currency translation difference
68 979
-
68 979
1 808 645
- 1 808 645
Modification surplus of fixed assets result
116 300 (22 133)
94 167
318 250 (61 163)
257 087
185 279 (22 133) 163 146
2 126 895 (61 163) 2 065 732
On June 4, 2014, Law No. (44) for the year 2014 has been issued to impose a temporary three years’ additional tax
amounting to (5%) starting from the taxable period of the above-mentioned resolution.This additional tax is taxable
profit over an amount of OneMillion Egyptian pounds by individuals or corporates as stipulated in the articles of the
Income Tax Law. This additional tax should be assessed and collected according to those articles. This law became
into force starting from June 5, 2014.
On June 30, 2014, Law No. (53) for the year 2014 has been issued by a presidential decree. This law included amend-
ments for some articles of Income Tax LawNo. (91) for the year 2005.Themost important amendments are as follows:
1. Imposing a tax on Dividends.
2. Imposing a tax on the capital gains resulted from the sale of capital contribution shares and securities.
On April 6, 2015, ministerial decree No. (2/11) was issued for the year 2015modifying the Executive regulations of the
income tax law issued by ministerial decree No.91 for the year 2005.
78 • 2017 ANNUAL REPORT
2017 ANNUAL REPORT • 79
GB Auto (S.A.E.)
Notes to the consolidated financial statements for the financial year ended December 31, 2017
(In the notes all amounts are shown in Thousand Egyptian Pounds unless otherwise stated)