Resources for states, resources for society

The Group contributes to the government budget in about 60 countries worldwide through the taxes paid locally.

As at 31 December 2014Earnings before taxes (million of euro)Income taxes (million of euro)Effective tax rate
Generali Group 2,953.3 1,032.6 34.96%
Italy 2,157.3 413.7 19.18%
France 699.7 132.6 18.95%
Germany 702.6 208.6 29.69%
CEE 362.3 35.9 9.91%
Othe countries 798.9 204.8 25.64%

As at 31 December 2014, the consolidated effective tax rate, calculated as the ratio between the total taxes paid and the consolidated earnings before taxes, amounted to 34.96%, reflecting the income tax rates and regulations in each jurisdiction. Since most of the Group companies operate in countries with higher tax regimes (such as France, Germany and Italy) the consolidated effective tax rate is high.

Over the years, the rate has seen modest changes: in 2014 it was slightly higher than the rate of 31.94% recorded on 31 December 2013.

In 2014 the consolidated effective tax rate was mainly affected by a number of specific elements: the presence of tax-exempt income (for example, the distribution of dividends and tax-exempt capital gains), the substitute tax on Controlled Foreign Companies (CFC) foreign subsidiaries provided for by Italian legislation and the revaluation of Bank of Italy’s shares, local income tax (IRAP), non-deductible expenses (for example, in Germany, the taxes related to previous years) and adjustments to deferred taxes.

We believe that, in the near future, the consolidated tax rate will remain in line with recent years, unless specific corporate restructuring activities are undertaken.