INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

	2017			2016			2015
Current income taxes
Current year		397			615			712
Adjustments in respect of previous years		(28	)		(3	)		38

Total current income taxes		369			612			750
Deferred income taxes
Origination / reversal of temporary differences		(166	)		(217	)		(782	)
Changes in tax rates		10			(7	)		24
Current year tax losses unrecognized		153			172			207
Recognition / utilization of previously unrecognized tax losses or tax credits		—			(15	)		(23	)
Derecognition of previously recognized tax losses		—			95			32
Expiration of tax losses		—			2			—
Write off deferred tax assets		20			—			7
Adjustments in respect of previous years		86			—			6
Other		—			(7	)		(1	)

Total deferred tax expense		103			23			(530	)

Income tax expense		472			635			220

Summary of reconciliation between statutory and effective income tax

	2017			2016			2015
(Loss) / profit before tax from continued operations		(24	)		347			(595	)
Income tax benefit at statutory tax rate (25.0%)		(6	)		87			(148	)
Difference due to the effects of:
Different tax rates in different jurisdictions		(90	)		152			(76	)
Non-deductible expenses		216			89			320
Non-taxable income		(35	)		(81	)		(11	)
Adjustments in respect of previous years		52			(3	)		44
Movement in (un)recognized deferred tax assets		173			247			230
Withholding taxes		123			62			(179	)
Tax claims		25			59			5
Change in income tax rate		10			(7	)		28
Minimum taxes and other		4			30			7

Income tax expense		472			635			220


Effective tax rate		– 1,966.7	%		183.0	%		– 37.0	%

Schedule of deferred tax assets and liabilities in the statement of financial position

	2017			2016
Deferred tax assets		272			343
Deferred tax liabilities		(376	)		(331	)

Net deferred tax position		(104	)		12

Summary of movements of deferred tax assets and liabilities

The following table shows the movements of the deferred tax assets and liabilities in 2017:

				Movement in deferred taxes
	Opening balance			Net income statement movement			Changes in composition of the group		Other comprehensive & other			Currency translation			Tax rate changes		Closing balance
Property and equipment, net		(420	)		(6	)		—		(13	)		(4	)		—		(443	)
Intangible assets, net		(166	)		—			—		(4	)		5			—		(165	)
Trade receivables		30			19			—		(4	)		(9	)		—		36
Other assets		(3	)		(12	)		—		1			6			—		(8	)
Provisions		29			3			—		(3	)		4			—		33
Long-term debt		25			(6	)		—		(7	)		1			—		13
Accounts payable		94			38			—		28			(27	)		—		133
Other liabilities		53			(27	)		—		(33	)		30			—		23
Other movements and temporary differences		23			(24	)		—		—			—			—		(1	)
Deferred subnational income taxes and other		(1	)		2			—		4			(4	)		—		1
Withholding tax on distributed earnings		(73	)		(43	)		—		1			(1	)		—		(116	)

		(409	)		(56	)		—		(30	)		1			—		(494	)
Tax losses and other balances carried forwards		2,270			(47	)		—		197			(50	)		—		2,370
Non-recognized deferred tax assets on losses and credits		(1,822	)		—			—		(158	)		—			—		(1,980	)
Non-recognized deferred tax assets on temporary differences		(27	)		—			—		27			—			—		—

Net deferred tax positions		12			(103	)		—		36			(49	)		—		(104	)

The following table shows the movements of the deferred tax assets and liabilities in 2016:

				Movement in deferred taxes
	Opening balance			Net income statement movement			Changes in composition of the group			Other comprehensive & other			Currency translation			Tax rate changes			Closing balance
Property and equipment, net		(499	)		32			74			26			(54	)		1			(420	)
Intangible assets, net		(228	)		32			(3	)		37			(3	)		(1	)		(166	)
Trade receivables		21			13			—			(1	)		(3	)		—			30
Other assets		(5	)		3			—			—			(1	)		—			(3	)
Provisions		23			3			3			(1	)		1			—			29
Long-term debt		9			9			—			(1	)		8			—			25
Accounts payable		71			8			—			1			14			—			94
Other liabilities		45			7			1			(2	)		2			—			53
Other movements and temporary differences		20			—			—			1			1			—			23
Deferred subnational income taxes and other		(2	)		1			(2	)		2			—			—			(1	)
Withholding tax on distributed earnings		(45	)		(26	)		—			—			(2	)		—			(73	)

		(590	)		82			73			62			(37	)		—			(409	)
Tax losses and other balances carried forwards*		2,613			(89	)		233			(14	)		(298	)		(174	)		2,270
Non-recognized deferred tax assets on losses and credits *		(2,263	)		—			—			(44	)		311			174			(1,822	)
Non-recognized deferred tax assets on temporary differences		(14	)		(16	)		—			—			3			—			(27	)

Net deferred tax positions		(254	)		(23	)		306			4			(21	)		—			12

* The deferred tax movements in other comprehensive income in 2016 relates to non-recognized deferred tax asset on losses of US$3 for Wind Telecom S.p.A.

Summary of amount and expiry date of deductible temporary differences, unused tax losses and other carry forwards

As of December 31, 2017	0 - 5 years			6 - 10 years			More than 10 years		Indefinite			Total
Tax losses expiry
Recognized losses		(347	)		(12	)		—		(833	)		(1,192	)
Recognized DTA		85			3			—		234			322
Non-recognized losses		(420	)		(2,639	)		—		(6,396	)		(9,455	)
Non-recognized DTA		95			660			—		1,232			1,987

As of December 31, 2017	0 - 5 years			6 - 10 years		More than 10 years		Indefinite		Total
Other credits carried forwards expiry
Recognized credits		(68	)		—		—		—		(68	)
Recognized DTA		68			—		—		—		68
Non-recognized credits		—			—		—		—		—
Non-recognized DTA		—			—		—		—		—

As of December 31, 2016	0 - 5 years			6 - 10 years			More than 10 years		Indefinite			Total
Tax losses expiry
Recognized losses		(47	)		—			—		(1,223	)		(1,270	)
Recognized DTA		—			9			—		402			411
Non-recognized losses		(1,016	)		(2,148	)		—		(5,137	)		(8,301	)
Non-recognized DTA		237			537			—		1,003			1,777
Other credits carried forwards expiry
Recognized credits		(37	)		—			—		—			(37	)
Recognized DTA		37			—			—		—			37
Non-recognized credits		—			—			—		(187	)		(187	)
Non-recognized DTA		—			—			—		45			45