Cemex 2013 Annual Report Download - page 161

Notes to the consolidated financial statements
AsofDecember31,2013,theestimatedamortizationofliabilitiesfortaxespayableresultingfromthechangesintaxconsolidationinMexico
isasfollows:
2013
2014 $ 4,274
2015  4,963
2016  4,142
2017  4,125
2018andthereafter  7,300
  $ 24,804
CEMEX,S.A.B.deC.V.anditsMexicansubsidiariesgeneratedIncomeTax(“IT”)inaconsolidatedmanner.Therefore,theamountsrecognized
inthesenancialstatementsfortheyearsendedDecember31,2013,2012and2011includetheeffectofthisconsolidation.
OnJanuary1,2008,anewlawbecameeffectiveinMexico,whichwasnamedtheMinimumCorporateTaxlaw(
ImpuestoEmpresarialTasa
Única
or“IETU”)andsupersededtheBusinessAssetTaxlaw(“BAT”).IETUiscalculatedbasedoncashows,andtheratewas16.5%in2008,
17%in2009and17.5%in2010andthereafter.EntitiessubjecttoIETUarealsorequiredtodetermineincometaxandpaythegreater
oftheamountsbetweenthetwo.Inbroadterms,taxablerevenuesforIETUpurposesarethosegeneratedthroughthesaleofgoods,the
renderingofprofessionalservices,aswellasrentalrevenue.Therearecertainexceptions,andataxpayermayconsiderasdeductibleitems
forIETUcalculationstheexpensesincurredtoconducttheactivitiespreviouslydescribed.CapitalexpendituresarefullydeductibleforIETU.
EachentitymustcalculateIETUonastand-alonebasis,andtaxconsolidationisnotpermitted.UnlikeBAT,IETUisadenitivetaxand,unlike
incometax,thetaxableincomeunderIETUisgreatersincesomedeductionsarenotpermitted,whichinsomecasesmaybecompensated
bythelowerIETUratethantheincometaxrate.During2013,2012and2011,CEMEX,S.A.B.deC.V.anditsmainsubsidiariesinMéxico
paidincometax.Asaresultofthemodicationstodifferenttaxlawsmentionedabove,IETUlawwasabrogated,effectiveJanuary1,2014.
12B) Deferred income taxes
Theeffectofdeferredincometaxesfortheperiodrepresentsthedifferencebetweentheincometaxbalancesatthebeginningandendof
theperiod.AsofDecember31,2013and2012thetemporarydifferencesthatgeneratedthedeferredincometaxassetsandliabilitiesof
CEMEX,S.A.B.deC.V.arepresentedbelow:
2013 2012
Deferred tax assets:
Taxlosscarryforwardsandothertaxcredits $ 13,029 2,206
Advancepaymentsandconvertiblesecurities  403 1,513
Derivativenancialinstruments  1,115 2,617
Issuancecostofdebt  135 302
 Totaldeferredtaxassets  14,682 6,638
Deferred tax liabilities:
Landandbuildings  (549) (510)
Derivativenancialinstruments  (1,879) (1,210)
Convertiblesecurities  (388) (608)
Investmentsinassociates  (1,091) (1,028)
 Totaldeferredtaxliabilities  (3,907) (3,356)
Net deferred tax assets $ 10,775 3,282
Thechangeindeferredincometaxesfortheyears2013and2012includesanexpenseofapproximately$1,329and$31,duetothe
reclassicationofconvertiblebondstostockholder’sequityduetothechangeinthefunctionalcurrency(note2D)andtoequityissuance
expenses,respectively,recognizedinotherequityreserves.CEMEX,S.A.B.deC.V.’smanagementconsidersthatsufcienttaxableincome
willbegeneratedinthefuturetorealizethetaxbenetsassociatedwithdeferredincometaxassetsandtaxlosscarryforwards,priorto
theirexpiration.Intheeventthatpresentconditionschangeanditisdeterminedthatfutureoperationswouldnotgenerateenoughtaxable
income,CEMEX,S.A.B.deC.V.wouldnotrecognizesuchasset.
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