29. INCOME TAX EXPENSE

The Group’s applicable income tax rate for the companies located in the Russian Federation is 20%.

RUB millions

Year ended December 31, 2013

Year ended December 31, 2012

CURRENT INCOME TAX EXPENSE

Current year

36,581

36,042

Adjustment for prior years

(1,758)

(1,934)

34,823

34,108

DEFERRED TAX EXPENSE

Origination and reversal of temporary differences

5,777

5,127

Change in tax rate

(1,340)

534

4,437

5,661

TOTAL INCOME TAX EXPENSE

39,260

39,769

Share of tax of associates and joint ventures

2,556

2,990

TOTAL INCOME TAX EXPENSE INCLUDING SHARE OF TAX OF ASSOCIATES AND JOINT VENTURES

41,816

42,759

Reconciliation of effective tax rate:

RUB millions

Year ended December 31, 2013

Year ended December 31, 2012

RUB million

%

RUB million

%

TOTAL INCOME TAX EXPENSE

41,816

18.5

42,759

18.9

Profit before income tax excluding share of of profit associates and joint ventures

214,729

211,154

Profit before income tax of associates and joint ventures

10,806

15,025

Profit before income tax

225,535

226,179

Tax at applicable domestic tax rate (20%)

45,107

20.0

45,236

20.0

Effect of tax rates in foreign jurisdictions

(1,596)

(0.7)

(2,935)

(1.3)

Difference in statutory tax rate in domestic entities

(2,009)

(0.9)

(1,775)

(0.8)

Non-deductible income and expenses

3,737

1.7

4,479

2.0

Adjustment for prior years

(1,758)

(0.8)

(1,934)

(0.9)

Change in tax rate

(1,340)

(0.6)

534

0.2

Foreign exchange income/losses

(325)

(0.1)

(846)

(0.4)

TOTAL INCOME TAX EXPENSE

41,816

18.5

42,759

18.9

Notes in Consolidated Statements:

Consolidated Statement of Profit and Loss and Other Comprehensive Income