INCOME TAX AND DEFERRED TAX (Tables)

12 Months Ended

Dec. 31, 2017

INCOME TAX AND DEFERRED TAX [Abstract]

The reconciliation between the tax computed for tax purposes and the income tax expense charged to the statement of comprehensive income in the years ended December 31, 2017, 2016 and 2015 is as follows:

	2017			2016			2015
Current income tax (expense) / gain		(1,498,885	)		(482,721	)		68,626
Deferred income tax		143,855			(6,583	)		44,927
Income tax (expense) / gain		(1,355,030	)		(489,304	)		113,553

Net Deferred Tax Assets and Liabilities

The analysis of the net deferred tax assets and liabilities is as follows:

	2017			2016
Deferred tax assets:
Deferred tax assets to be recovered after more than 12 months		276,751			375,430
Deferred tax assets to be recovered after less than 12 months		26,880			12,184
Deferred tax liabilities:
Deferred tax liabilities to be recovered after more than 12 months		(522,764	)		(791,823	)
Deferred tax liabilities to be recovered after less than 12 months		(53,729	)		(12,507	)
Deferred tax liabilities, net		(272,862	)		(416,716	)

Components of Net Deferred Tax Assets and Liabilities

The components of the net deferred tax assets and liabilities as of December 31, 2017, 2016 and 2015 are the following:

Deferred tax assets	Allowance for doubtful accounts			Tax credits discounted value loss			Account receivables discounted value			Provisions for legal claims and other provisions			Financial lease			Income tax loss carryforward			Total
As of December 31, 2015		1,218			5,261			38			71,360			-			58,936			136,813
Charge in results		5,454			(3,733	)		-			26,846			281,170			(58,936	)		250,801
As of December 31, 2016		6,672			1,528			38			98,206			281,170			-			387,614
Charge in results		(6,672	)		(1,528	)		(38	)		(21,784	)		(53,961	)		-			(83,983	)
As of December 31, 2017		-			-			-			76,422			227,209			-			303,631

Deferred tax liabilities	Deferred sales			Loans			Property, plant and equipment			Cash and cash equivalents			Inventories			Total
As of December 31, 2015		46			(6,652	)		(539,622	)		(719	)		-			(546,947	)
Charge in results		-			1,900			(252,201	)		(7,082	)		-			(257,383	)
As of December 31, 2016		46			(4,752	)		(791,823	)		(7,801	)		-			(804,330	)
Charge in results		(46	)		2,272			229,318			(3,350	)		(357	)		227,837
As of December 31, 2017		-			(2,480	)		(562,505	)		(11,151	)		(357	)		(576,493	)

Effective Income Tax Rate Reconciliation

Income tax expense computed at the statutory tax rate on pre-tax income differs from the income tax expense for the years ended December 31, 2017, 2016 and 2015 as follows:

	2017			2016			2015
Pre-tax income		4,148,296			1,419,982			(285,662	)
Statutory income tax rate		35	%		35	%		35	%
Pre-tax income at statutory income tax rate		(1,451,904	)		(496,994	)		99,982
Tax effects due to:
-Change in the tax rate⁽¹⁾		102,634			-			-
-Non-taxable income or non-deductible expenses		(5,316	)		7,690			13,571
-Others		(444	)		-			-
Income tax expense		(1,355,030	)		(489,304	)		113,553

⁽¹⁾ Corresponds to the effect of the change in the enacted tax rate on the net deferred tax liability according to the aforementioned.