Income tax paid by the Group was PLN 19,8 million in 2013.

The Group’s effective income tax rate was 12.5% in 2013 and 18.8% in 2012, compared to the standard Polish corporate income tax rate of 19%. Income tax was PLN 16.3 million in 2013 compared to PLN 24.5 million in 2012. Quarterly income tax was minus PLN 1.6 million in Q4 2013, PLN 5.6 million in Q3 2013, and PLN 6.4 million in Q4 2012.

The effective tax rate in 2013 was mainly driven by a recognised tax relief for WSE’s investments in new technologies, and a significant difference between the opening tax value and the carrying value of the UTP system whose implementation was completed in April 2013 (to the extent of intangible assets).

In Q1 2013, WSE exercised the right to deduct the expenditure in new technologies incurred in 2006-2011 against taxable income. The tax refund from the Tax Office stood at PLN 1.1 million in Q1 2013. Furthermore, in Q4 2013, the Company once again recognised a tax relief for new technologies with regard to the investment in new technologies in 2013. As a result of the recognised tax relief, income tax was reduced by PLN 5.9 million.

Income tax paid by the Group was PLN 19,8 million in 2013 compared to PLN 32,4 million in 2012. WSE accounted for income tax under the simplified method in 2012 and under general rules in 2013. WSE reported a tax credit of PLN 10.5 million at the end of 2013, which is expected to be cleared in 2014.