43 Income taxes
| (€ million) | 2017 | 2016 | 2015 | |||||||||
| Current taxes: | ||||||||||||
| - Italian subsidiaries | 712 | 195 | 155 | |||||||||
| - subsidiaries of the Exploration & Production segment - outside Italy | 3,167 | 2,671 | 4,015 | |||||||||
| - other subsidiaries - outside Italy | 142 | 133 | 218 | |||||||||
| 4,021 | 2,999 | 4,388 | ||||||||||
| Net deferred taxes: | ||||||||||||
| - Italian subsidiaries | (464 | ) | (243 | ) | 881 | |||||||
| - subsidiaries of the Exploration & Production segment - outside Italy | (162 | ) | (813 | ) | (2,156 | ) | ||||||
| - other subsidiaries - outside Italy | 72 | (7 | ) | 9 | ||||||||
| (554 | ) | (1,063 | ) | (1,266 | ) | |||||||
| 3,467 | 1,936 | 3,122 | ||||||||||
Current income taxes payable by Italian subsidiaries amounted to €712 million and were in respect of the Italian corporate taxation IRES for €26 million and IRAP for €20 million and foreign taxes on the share of profit earned outside Italy for €666 million.
The reconciliation between the statutory tax charge calculated by applying the Italian statutory tax rate of 24% (27.5% in 2016 and in 2015) and the effective tax charge is the following:
| (€ million) | 2017 | 2016 | 2015 | |||||||||
| Profit (loss) before taxation | 6,844 | 892 | (4,277 | ) | ||||||||
| Tax rate (IRES) (%) | 24.0 | 27.5 | 27.5 | |||||||||
| Statutory corporation tax charge (credit) on profit or loss | 1,643 | 245 | (1,176 | ) | ||||||||
| Increase (decrease) resulting from: | ||||||||||||
| - higher tax charges related to subsidiaries outside Italy | 1,882 | 1,152 | 2,576 | |||||||||
| - impact pursuant to the write-off of deferred tax assets and recalculation of tax rates | (96 | ) | 397 | 1,514 | ||||||||
| - effect due to the tax regime provided for intercompany dividends | 1 | 87 | 114 | |||||||||
| - Italian regional income tax (IRAP) | 77 | 42 | 100 | |||||||||
| - effect due to non-taxable gains/losses on sales of investments | (177 | ) | 8 | (39 | ) | |||||||
| - impact pursuant to redetermination of the Italian Windfall Corporate tax as per Law 7/2009 | 61 | |||||||||||
| - effect due to discontinued operations | (288 | ) | ||||||||||
| - other adjustments | 76 | 5 | 321 | |||||||||
| 1,824 | 1,691 | 4,298 | ||||||||||
| Effective tax charge | 3,467 | 1,936 | 3,122 | |||||||||
In 2017, the higher tax charges at non-Italian subsidiaries of €1,882 million related to the Exploration & Production segment for €1,811 million.
In 2016, the higher tax charges at non-Italian subsidiaries of €1,152 million related to the Exploration & Production segment for €1,211 million. The impact pursuant to the write-off of deferred tax assets and recalculation of tax rates of €397 million was incurred at Italian subsidiaries and essentially related to a write-off at deferred tax assets due to projections of lower future taxable profit.
In 2015, the higher tax charges at non-Italian subsidiaries of €2,576 million related to the Exploration & Production segment for €2,410 million, including a write-off of deferred tax assets due to a reduced profitability outlook of €1,058 million. The impact pursuant to the write-off of deferred tax assets and recalculation of tax rates of €1,514 million was incurred at Italian subsidiaries and related to a write-off at deferred tax assets due to projections of lower future taxable profit and to a reduction due to a change in the statutory tax rate from 27.5% to 24%, starting from January 1, 2017. The effect due to the Italian regional income tax (IRAP) of €100 million included a write-off at deferred tax assets due to projections of lower future taxable profit for €54 million.