19. Deferred tax assets

Changes in deferred tax asset in the year ended 31 December 2013Opening balanceChanges recognized in the financial profit/lossChange in composition of the groupExchange differencesOtherClosing balance
Financial Instruments (3 216) 400 334 (23) 3 033 528
Receivables 459 (186) 65 4 - 342
Properties - 2 689 - - - 2 689
Provisions for jubilee bonuses, retirement severance pay etc. 78 (3) - - - 75
Provision for bonuses and appropriation to the bonus fund 288 108 - - - 396
Provision for paid vacation 60 (6) 2 (2) - 54
Other provisions and liabilities 3 564 (101) 58 (37) - 3 484
Tax losses to be used in future periods 4 508 (3 845) 15 - 7 685
Provision for PTE’s reimbursement of undue handling fees to the Social Insurance Institution 1 679 (273) - - - 1 406
Tax allowance regarding operations in the special economic zone 6 543 725 - - - 7 268
Other - 19 4 (1) - 22
Total deferred tax assets 13 963 (473) 478 (59) 3 040 16 949

Changes in deferred tax assets in the year ended 31 December 2012Opening balanceChanges recognized in the financial profit/lossChanges recognized in other comprehensive incomeExchange differencesReclassification to deferred tax liability 1)Closing balance
Financial Instruments (1 069) (169) (1 993) 15 - (3 216)
Receivables 422 36 - 1 - 459
Properties (7 984) 142 - - 7 842 -
Provisions for jubilee bonuses, retirement severance pay etc. 459 (42) - - (339) 78
Provision for bonuses and appropriation to the bonus fund 771 830 - - (1 313) 288
Provision for paid vacation 58 8 - (6) - 60
Outstanding liabilities to natural persons (under personal service contracts, agency contracts etc.) 314 7 - - (321) -
Financial Instruments 3 584 711 - (146) (585) 3 564
Tax losses to be used in future periods 10 476 (5 968) - - - 4 508
Provision for PTE’s reimbursement of undue handling fees to the Social Insurance Institution 1 569 110 - - - 1 679
Tax allowance regarding operations in the special economic zone - 6 543 - - - 6 543
Total deferred tax asset 8 600 2 208 (1 993) (136) 5 284 13 963

1) On 27 September 2011, nine PZU Group companies signed an agreement establishing the Tax Capital Group (the "TCG”) in accordance with the Corporate Income Tax Act of 15 February 1992 (uniform text - Journal of Laws No. 74 of 2011, item 397, as amended; the “CIT Act”). The nine companies were PZU, PZU Życie, TFI PZU, PZU AM, PZU CO, PZU Pomoc SA, Ipsilon BIS SA, Ogrodowa-Inwestycje Sp. z o.o., Ipsilon Sp. z o.o . The TCG has been established for three years from 1 January 2012 to 31 December 2014. As a consequence the deferred tax assets and provisions of all the consolidated companies in the CTG were netted.

Unrecognized deferred tax asset related to tax losses which, as at 31 December 2013, were as follows:

  • PZU Lietuva: PLN 75,476 thousand (as at 31 December 2012: PLN 73,150 thousand);
  • PZU Lietuva Gyvybes Draudimas: PLN 12,109 thousand.

These losses can be realized at a time that is not prescribed by the provisions of law.