TAX SITUATION (Tables)
 12 Months Ended
Dec. 31, 2019
TAX SITUATION  
Schedule of tax rates

 

 

 

 

 

 

 

 

 

 

Additional 

Taxable year

    

Rate

    

rate (surcharge) (*)

2020

 

32

 

 4

2021

 

31

 

 3

2022

 

30

 

 3

As of 2023

 

30

 

 —

 

(*)The additional rate (surcharge ) will be applicable only to financial entities that have a taxable rate equal or greater than 120,000 Unit of tax value ("UVT" from its Spanish acronym) which as of December 31,2019 amounts to a total of S/4.2 million; in that sense, Credicorp Capital Fiduciaria and Banco Compartir must pay the income tax taking into account the aforemetioned.

Schedule of detailed information about reconciliation between the statutory income tax rate and the effective tax rate

The reconciliation of the statutory income tax rate to the effective tax rate for the Group is as follows:

 

 

 

 

 

 

 

 

    

2019

    

2018

    

2017

 

 

%  

 

%  

 

%

 

 

 

 

 

 

 

Peruvian statutory income tax rate

 

29.50

 

29.50

 

29.50

Increase (decrease) in the statutory tax rate due to:

 

  

 

  

 

  

(i) Increase arising from  income  of subsidiaries not domiciled in Peru

 

1.55

 

0.09

 

0.47

(ii) Non-taxable income, net

 

(3.91)

 

(2.39)

 

(4.98)

Effective income tax rate

 

27.14

 

27.20

 

24.99

 

Schedule of detailed information about income tax expenses

b)    Income tax expense for the years ended December 31, 2019, 2018 and 2017 comprises:

 

 

 

 

 

 

 

 

    

2019

    

2018

    

2017

 

 

S/(000)

 

S/(000)

 

S/(000)

Current -

 

  

 

  

 

  

In Peru

 

1,469,497

 

1,315,896

 

1,262,302

In other countries

 

206,120

 

113,912

 

134,540

 

 

1,675,617

 

1,429,808

 

1,396,842

 

 

 

 

 

 

 

Deferred -

 

  

 

  

 

  

In Peru

 

(30,967)

 

87,952

 

(18,264)

In other countries

 

(21,573)

 

3,149

 

14,708

 

 

(52,540)

 

91,101

 

(3,556)

Total

 

1,623,077

 

1,520,909

 

1,393,286

 

Schedule of deferred taxes

c)    The following table presents a summary of the Group’s deferred income tax:

 

 

 

 

 

 

    

2019

    

2018

 

 

S/(000)

 

S/(000)

Deferred income tax asset, net

 

  

 

  

Deferred asset

 

  

 

  

Allowance for loan losses for loan portfolio

 

699,970

 

674,689

Provision for profit sharing

 

57,351

 

8,852

Provision for sundry expenses and risks

 

36,256

 

27,404

Provision for pending vacations

 

24,378

 

16,817

Depreciation of improvements for leased premises

 

19,005

 

20,479

Unrealized loss in valuation on cash flow hedge derivatives

 

14,992

 

9,286

Carry forward tax losses

 

4,773

 

6,790

Unrealized losses due to valuation of investments at fair value through other comprehensive income

 

632

 

4,105

Others

 

51,541

 

35,122

 

 

 

 

 

Deferred liability

 

  

 

  

Intangibles, net

 

(223,101)

 

(159,620)

Buildings depreciation

 

(66,818)

 

(68,398)

Adjustment for difference in exchange of SUNAT and SBS

 

(30,846)

 

(47,289)

Deferred acquisitions costs - DAC

 

(17,578)

 

(14,913)

Unrealized gain due to valuation of investments at fair value through other comprehensive income

 

(12,387)

 

(3,190)

Unrealized gain in valuation on fair value hedge derivatives

 

(9,451)

 

(5,201)

Fluctuation of the fair value of the covered bonds

 

(7,971)

 

(16,558)

Unrealized gain in valuation on cash flow hedge derivatives

 

(2,021)

 

(6,608)

Buildings revaluation

 

(4,795)

 

(5,356)

Others

 

(12,977)

 

(12,694)

Total

 

520,953

 

463,717

 

 

 

 

 

Deferred income tax liability, net

 

  

 

  

Deferred asset

 

  

 

  

Carry forward tax losses

 

14,309

 

20,369

Deferred income due to commission

 

8,138

 

7,503

Allowance for loan losses for insurance

 

6,945

 

8,298

Unrealized losses due to valuation of investments at fair value through other comprehensive income

 

6,229

 

11,893

Provision for sundry expenses and risks

 

5,313

 

3,761

Others

 

27,913

 

5,126

 

 

 

 

 

Deferred liability

 

  

 

  

Intangibles, net

 

(50,048)

 

(36,907)

Gain generated in the reorganization of Pacífico EPS

 

(39,515)

 

(39,515)

Unrealized gain due to valuation of investments at fair value through other comprehensive income

 

(34,054)

 

(20,790)

Deferred acquisitions costs - DAC

 

(27,925)

 

(28,581)

Technical reserves for premiums

 

(23,180)

 

(12,084)

Others

 

(11,202)

 

(5,107)

Catastrophic insurance reserve

 

(9,776)

 

(9,950)

Leasing operations related to loans

 

(3,810)

 

(4,788)

Buildings revaluation

 

(3,463)

 

(1,694)

Buildings depreciation

 

(78)

 

(3,076)

Fluctuation due to valuation of investments at fair value through profit or loss

 

 —

 

(3,061)

Total

 

(134,204)

 

(108,603)

 

Schedule of summary of income tax returns of major subsidiaries open for examination by tax authorities

d)    The Peruvian Tax Authority has the right to review and, if necessary, amend the annual income tax returns filed by Peruvian subsidiaries up to four years after their filing date. Income tax returns of the major subsidiaries open for examination by the tax authorities are as follows:

Banco de Crédito del Perú S.A.

    

2016 to 2019

Mibanco, Banco de la Microempresa S.A.

 

2015 to 2019

Prima AFP S.A

 

2016 to 2019

Pacífico Compañía de Seguros y Reaseguros

 

2015 to 2019

Pacífico Peruano Suiza

 

2015 to 2017

 

Schedule of summary of annual income tax declarations pending examination by the overseas tax authorities

The annual income tax declarations pending examination by the overseas tax authorities are the following:

Banco de Crédito de Bolivia

   

2011, 2012, 2014 to 2019

Credicorp Capital Colombia

 

2016 to 2019

Credicorp Capital Holding Chile

 

2018 to 2019