Características del niño de ocho años

Income tax expense – current/deferred split

in USD millions, for the years ended December 31 2015 2014

Current 1,254 1,463

Deferred 18 195

Total income tax expense/(benefit) 1,273 1,659

Table 18.2

Expected and actual income tax expense

in USD millions, for the years ended December 31 Rate 2015 Rate 2014

Net income before income taxes 3,383 5,971

less: income tax (expense)/benefit attributable to policyholders (110) (106) Net income before income taxes attributable to shareholders 3,273 5,865 Expected income tax expense attributable to shareholders

computed at the Swiss statutory tax rate 22.0% 720 22.0% 1,290 Increase/(reduction) in taxes resulting from:

Tax rate differential in foreign jurisdictions 283 232

Tax exempt and lower taxed income (92) (109)

Non-deductible expenses 41 148

Tax losses not recognized 162 85

Prior year adjustments and other 49 (94)

Actual income tax expense attributable to shareholders 35.5% 1,163 26.5% 1,552

plus: income tax expense/(benefit) attributable to policyholders 110 106 Actual income tax expense 37.6% 1,273 27.8% 1,659

Table 18.2 sets out the factors that cause the actual income tax expense to differ from the expected expense computed by applying the Swiss statutory tax rate of 22.0 percent, which is the rate applicable in the jurisdiction where the ultimate parent company is resident.

The ZIC Group is required to record taxes on policyholder earnings for life insurance policyholders in certain jurisdictions. Accordingly, the income tax expense or benefit attributable to these life insurance policyholder earnings is included in income tax expense. In certain jurisdictions an accrual for future policy fees that will cover the tax charge is included in insurance benefits and losses.

Taxes paid by certain of the ZIC Group’s life insurance businesses are based on the investment result less allowable expenses. To the extent these taxes exceed the amount that would have been payable in relation to the shareholders’ share of taxable profits, it is normal practice for certain of the ZIC Group’s businesses to recover this portion from policyholders. While the relevant company has the contractual right to charge policyholders for the taxes attributable to their share of the investment result less expenses, the obligation to pay the tax authority rests with the company and therefore, the full amount of tax including the portion attributable to policyholders is accounted for as income tax. Income tax expense therefore includes an element attributable to policyholders. In addition, deferred tax on unrealized gains related to certain investment contracts with DPF is included as income tax expense recognized in OCI and an accrual for future policy fees to recover the tax charge is included in policy fee revenue.

Table 18.3

Deferred tax assets/(liabilities) analysis

by source

in USD millions, as of December 31 2015 2014

Assets Liabilities Assets Liabilities

Gross deferred tax

Deferred acquisition and origination costs 35 (846) 20 (765) Depreciable and amortizable assets 31 (51) 33 (48) Life policyholders’ benefits and deposits1 _{2 (1) 4 –}

Unrealized (gains)/losses on available-for-sale investments

and cash flow hedges 177 (379) 176 (462)

Accruals and deferred income 158 (2) 168 (1)

Reserves for losses and loss adjustment expenses 508 (178) 477 (196) Reserves for unearned premiums 879 (1) 801 – Pensions and other employee benefits 514 (58) 632 (6)

Other assets/liabilities 427 (44) 351 (37)

Tax loss carryforwards 550 – 544 –

Gross deferred tax assets/(liabilities)

before valuation allowance 3,281 (1,558) 3,205 (1,515)

Valuation allowance (269) – (131) –

Gross deferred tax assets/(liabilities)

after valuation allowance 3,012 (1,558) 3,075 (1,515)

Deferred tax assets 1,454 1,559

Gross deferred tax

Deferred acquisition and origination costs 42 (2,282) 28 (2,447) Depreciable and amortizable assets 129 (1,980) 236 (2,215) Life policyholders’ benefits and deposits1 _{1,286 (840) 1,392 (855)}

Unrealized (gains)/losses on available-for-sale investments

and cash flow hedges 210 (1,029) 190 (1,367)

Accruals and deferred income 133 (103) 118 (191) Reserves for losses and loss adjustment expenses 87 (87) 105 (95) Reserves for unearned premiums 33 (90) 40 (104)

Deferred front-end fees 468 – 528 –

Pensions and other employee benefits 594 (269) 498 (94) Other assets/liabilities 637 (1,504) 721 (1,544)

Tax loss carryforwards 107 – 69 –

Gross deferred tax assets/(liabilities)

before valuation allowance 3,725 (8,184) 3,926 (8,912)

Valuation allowance (23) – (22) –

Gross deferred tax assets/(liabilities)

after valuation allowance 3,702 (8,184) 3,904 (8,912)

Deferred tax liabilities (4,482) (5,008)

Net deferred tax liabilities (3,028) (3,449)

Table 18.4

Development of net deferred tax liabilities

in USD millions 2015 2014

As of January 1 (3,449) (3,080)

Net change recognized in the income statement (18) (195)

Net change recognized in equity 215 (590)

Net changes due to acquisitions/(divestments) (1) (26) Foreign currency translation effects 225 442

As of December 31 (3,028) (3,449)

attributable to policyholders (562) (589)

attributable to shareholders (2,466) (2,860)

The net deferred tax liabilities relating to non-controlling interests amounted to USD 347 million and USD 431 million as of December 31, 2015 and 2014, respectively.

Table 18.5 Development of deferred income taxes included in equity in USD millions 2015 2014 As of January 1 (111) 446

Net unrealized gains/(losses) on available-for-sale investments 394 (702)

Cash flow hedges (15) (65)

Revaluation reserve (2) (8)

Net actuarial gains/(losses) on pension plans (162) 185

Foreign currency translation effects 29 33

As of December 31 134 (111)

Table 18.6

Tax loss carryforwards and tax credits

in USD millions, as of December 31 2015 2014

For which deferred tax assets have been recognized, expiring

< 5 years 57 72

5 to 20 years 408 264

> 20 years or with no time limitation 805 1,218

Subtotal 1,271 1,553

For which deferred tax assets have not been recognized, expiring

< 5 years 64 36

5 to 20 years 89 112

> 20 years or with no time limitation 826 445

Subtotal 980 593

Total 2,250 2,146

The tax rates applicable to tax losses for which a deferred tax asset has not been recognized are 27.6 percent and 24.6 percent as of December 31, 2015 and 2014, respectively.

The recoverability of the deferred tax asset for each taxpayer is based on the taxpayer’s ability to utilize the deferred tax asset. This analysis considers the projected taxable income to be generated by the taxpayer, as well as its ability to offset the deferred tax asset against deferred tax liabilities.

Management assesses the recoverability of the deferred tax asset carrying values based on future years taxable income projections and considers that the carrying values of the deferred tax assets as of December 31, 2015, are recoverable.