KB Financial Group Inc. | CIK:0001445930 | 3

  • Filed: 4/27/2018
  • Entity registrant name: KB Financial Group Inc. (CIK: 0001445930)
  • Generator: Fujitsu
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1445930/000119312518136720/0001193125-18-136720-index.htm
  • XBRL Instance: http://www.sec.gov/Archives/edgar/data/1445930/000119312518136720/kb-20171231.xml
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    • ifrs-full:DisclosureOfIncomeTaxExplanatory

    33. Income Tax Expense

    Income tax expense for the years ended December 31, 2015, 2016 and 2017, are as follows:

     

         2015     2016     2017  
         (In millions of Korean won)  

    Tax payable

    		       

    Current tax expense

    		    ￦ 342,066     ￦ 607,175     ￦ 700,597  

    Adjustments recognized in the period for current tax of prior years

    		      (17,939 )      27,217       (39,445 ) 
      

     

     

    		    

     

     

    		    

     

     

    		  

    Sub-total

    		      324,127       634,392       661,152  
      

     

     

    		    

     

     

    		    

     

     

    		  

    Changes in deferred income tax assets (liabilities)1

    		      93,221       (201,012 )      212,195  
      

     

     

    		    

     

     

    		    

     

     

    		  

    Income tax recognized directly in equity

    		       

    Exchange difference in foreign operation

    		      —         (11,338 )      25,674  

    Remeasurements of net defined benefit liabilities

    		      7,363       (4,093 )      (7,240 ) 

    Change in value of available-for-sale financial assets

    		      5,177       20,754       (84,781 ) 

    Change in value of held-to-maturity financial assets

    		      349       (1,186 )      (3,789 ) 

    Share of other comprehensive loss of associates

    		      (816 )      116       20,975  

    Cash flow hedges

    		      (486 )      (1,423 )      (4,368 ) 

    Hedges of a net investment in a foreign operation

    		      8,134       2,265       (8,186 ) 

    Other comprehensive income for assets held for sale

    		      —         —         (21,498 ) 

    Other comprehensive income for separate accounts

    		      —         —         4,829  
      

     

     

    		    

     

     

    		    

     

     

    		  

    Sub-total

    		      19,721       5,095       (78,384 ) 
      

     

     

    		    

     

     

    		    

     

     

    		  

    Others

    		      320       —         —    
      

     

     

    		    

     

     

    		    

     

     

    		  

    Tax expense

    		    ￦ 437,389     ￦ 438,475     ￦ 794,963  
      

     

     

    		    

     

     

    		    

     

     

    		  

     

    1 The corporate tax rate was changed due to the amendment of corporate tax law in 2017. Accordingly, the expected rate has been applied for the deferred tax assets and liabilities that are expected to be utilized in periods after 2018. Amended income tax rate for ￦200 million and below is 11%, for ￦200 million to ￦20 billion is 22%, for ￦20 billion to ￦300 billion is 24.2% and for over ￦300 billion is 27.5%.

    An analysis of the net profit before income tax and income tax expense for the years ended December 31, 2015, 2016 and 2017, follows:

     

         2015     2016     2017  
         Tax rate     Amount     Tax rate     Amount     Tax rate     Amount  
         (%)     (In millions of
    Korean won)    		     (%)     (In millions of
    Korean won)    		     (%)     (In millions of
    Korean won)    		  

    Net profit before income tax

    		      ￦ 2,164,695       ￦ 2,628,655       ￦ 4,138,424  
        

     

     

    		      

     

     

    		      

     

     

    		  

    Tax at the applicable tax rate1

    		      24.18       523,394       24.18       635,673       24.19       1,001,037  

    Non-taxable income

    		      (3.92 )      (84,835 )      (7.15 )      (188,062 )      (5.02 )      (207,777 ) 

    Non-deductible expense

    		      0.75       16,186       0.64       16,711       0.26       10,706  

    Tax credit and tax exemption

    		      (0.02 )      (427 )      (0.04 )      (1,079 )      (0.04 )      (1,658 ) 

    Temporary difference for which no deferred tax is recognized

    		      0.27       5,772       0.10       2,749       (0.16 )      (6,484 ) 

    Deferred tax relating to changes in recognition and measurement

    		      (0.01 )      (251 )      (0.03 )      (828 )      (0.12 )      (4,894 ) 

    Income tax refund for tax of prior years

    		      (0.92 )      (19,894 )      (0.48 )      (12,612 )      (0.12 )      (4,854 ) 

    Income tax expense of overseas branch

    		      0.18       3,827       0.13       3,447       0.04       1,549  

    Effects from change in tax rate

    		      (0.03 )      (671 )      (0.03 )      (739 )      0.42       17,367  

    Others

    		      (0.26 )      (5,712 )      (0.64 )      (16,785 )      (0.24 )      (10,029 ) 
        

     

     

    		      

     

     

    		      

     

     

    		  

    Average effective tax rate and tax expense

    		      20.22     ￦ 437,389       16.68     ￦ 438,475       19.21     ￦ 794,963  
        

     

     

    		      

     

     

    		      

     

     

    		  

     

    1 Applicable income tax rate for ￦200 million and below is 11%, for ￦200 million to ￦20 billion is 22% and for over ￦20 billion is 24.2% as of December 31, 2015, 2016 and 2017.

    Details of current tax assets (income tax refund receivables) and current tax liabilities (income tax payables), as of December 31, 2016 and 2017, are as follows:

     

         2016  
         Tax payables
    (receivables) before
    offsetting    		      Offsetting      Tax payables
    (receivables) after
    offsetting    		  
         (In millions of Korean won)  

    Income tax refund receivables1

    		    ￦ (226,560 )     ￦ 226,560      ￦ —    

    Income tax payables

    		      668,372        (226,560 )       441,812  

     

         2017  
         Tax payables
    (receivables) before
    offsetting    		      Offsetting      Tax payables
    (receivables) after
    offsetting    		  
         (In millions of Korean won)  

    Income tax refund receivables1

    		    ￦ 215,702      ￦ (215,702 )     ￦ —    

    Income tax payables

    		      218,168        215,702        433,870  

     

    1  Excludes current tax assets of ￦6,324 million (2016: ￦65,738 million) by uncertain tax position and others, which do not qualify for offsetting.