19. Tax assets and liabilities

19.1 Consolidated tax group

Pursuant to current legislation, the BBVA Consolidated Tax Group includes the Bank (as the parent company) and its Spanish subsidiaries that meet the requirements provided for under Spanish legislation regulating the taxation regime for the consolidated profit of corporate groups.

The Group’s non-Spanish other banks and subsidiaries file tax returns in accordance with the tax legislation in force in each country.

19.2 Years open for review by the tax authorities

The years open to review in the BBVA Consolidated Tax Group as of 31 December, 2014 are 2010 and subsequent years for the main taxes applicable.

The remainder of the Spanish consolidated entities in general have the last four years open for inspection by the tax authorities for the main taxes applicable, except for those in which there has been an interruption of the limitation period due to the start of an inspection.

In the year 2014 as a consequence of the tax authorities examination reviews, inspections were initiated until the year 2009 inclusive, all of them signed in acceptance during the year 2014.

In view of the varying interpretations that can be made of some applicable tax legislation, the outcome of the tax inspections of the open years that could be conducted by the tax authorities in the future could give rise to contingent tax liabilities which cannot be reasonably estimated at the present time. However, the Group considers that the possibility of these contingent liabilities becoming actual liabilities is remote and, in any case, the tax charge which might arise therefore would not materially affect the Group’s accompanying consolidated financial statements.

19.3 Reconciliation

The reconciliation of the Group’s corporate income tax expense resulting from the application of the standard income tax rate and the income tax expense recognized in the accompanying consolidated income statements is as follows:

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	Millions of Euros
	2014		2013		2012
Reconciliation of Taxation at the Spanish Corporation Tax Rate to the Tax Expense Recorded for the Period	Amount	Effective Tax %	Amount	Effective Tax %	Amount	Effective Tax %
Consolidated profit before tax	3,980		2,864		2,111
From continuing operations	3,980		954		1,582
From discontinued operations	-		1,910		529
Taxation at Spanish corporation tax rate	1,194	30.00%	859	30.00%	633	30.00%
Lower effective tax rate from our foreign entities (*)	(318)		(498)		(273)
Mexico	(145)	24.27%	(301)	19.53%	(133)	24.60%
Chile	(71)	(8.36%)	(23)	23.00%	(54)	17.77%
Venezuela	(16)	25.85%	(128)	13.16%	(109)	13.23%
Colombia	2	30.41%	(20)	25.06%	(16)	26.60%
Peru	(12)	27.59%	(59)	20.74%	(18)	26.64%
Others	(76)		33		57
Revenues with lower tax rate (dividends)	(88)		(50)		(85)
Equity accounted earnings	(147)		(211)		(316)
Other effects	257		(73)		(176)
Current income tax	898		27		(217)
Of which:
Continuing operations	898		(16)		(352)
Discontinued operations	-		43		135

(*) Calculated by applying the difference between the tax rate in force in Spain and the one applied to the Group’s earnings in each jurisdiction.

The effective income tax rate for the Group in the year ended December 31 2014, 2013 and 2012 is as follows:

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	Millions of Euros
Effective Tax Rate	2014	2013	2012
Income from:
Consolidated Tax Group (*)	(997)	(3,115)	(3,972)
Other Spanish Entities	18	(13)	589
Foreign Entities	4,959	5,992	5,494
Total (**)	3,980	2,864	2,111
Income tax and other taxes	898	27	(217)
Effective Tax Rate	22.56%	0.94%	(10.28)%

(*) Includes income before taxes from continuing and discontinued transactions

19.4 Income tax recognized in equity

In addition to the income tax expense recognized in the accompanying consolidated income statements, the Group has recognized the following income tax charges for these items in the consolidated equity:

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	Millions of Euros
Tax Recognized in Total Equity	2014	2013	2012
Charges to total equity
Debt securities	(953)	(223)
Equity instruments	(188)	(9)	(19)
Subtotal	(1,141)	(232)	(19)
Credits to total equity (*)
Equity instruments
Debt securities and others			196
Subtotal			196
Total	(1,141)	(232)	177

19.5 Deferred taxes

The balance under the heading "Tax assets" in the accompanying consolidated balance sheets includes deferred tax assets. The balance under the “Tax liabilities” heading includes to the Group’s various deferred tax liabilities. The details of the most important tax assets and liabilities are as follows:

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	Millions of Euros
Tax Assets and Liabilities	2014	2013	2012
Tax assets-
Current	2,035	2,502	1,851
Deferred	10,391	9,202	9,859
Pensions	902	750	1,220
Portfolio	920	1,138	1,839
Other assets (investments in subsidiaries)	535	456	277
Impairment losses	1,041	790	2,682
Other	905	512	1,375
Secured tax assets	4,881	4,373	-
Tax losses	1,207	1,183	2,466
Total	12,426	11,704	11,710
Tax Liabilities-
Current	980	993	1,058
Deferred	3,177	1,537	2,762
Portfolio	2,096	925	1,100
Charge for income tax and other taxes	1,081	612	1,662
Total	4,157	2,530	3,820

(*) Laws guaranteeing the deferred tax assets have been approved in Spain and Portugal in 2013 and 2014.

Of the deferred tax assets contained in the above table, the detail of the items and amounts guaranteed by the Spanish and Portuguese governments, broken down by the items that originated those assets is as follows:

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	Millions of Euros
Secured tax assets	2014	2013
Pensions	1,741	1,565
Impairment losses	3,140	2,808
Total	4,881	4,373

As of December 31, 2014, unsecured net deferred tax assets of the above table amounted to €2,332 million (€3,291 million in 2013 and €7,097 million in 2012), which broken down by major geographies is as follows:

• Spain: Net deferred tax assets recognized in Spain totalled €1,383 million in 2014 (€2,322 million in 2013 and €6,183 million in 2012). €1,205 million of the figure recorded in the year 2014 for net deferred tax assets related to tax credits and tax loss carry forwards and €178 million relate to temporary differences.
• Mexico: Net deferred tax assets recognized in Mexico amounted to €399 million in 2014 (€402 million in 2013 and €279 million in 2012). 99.93% of deferred tax assets as of December 31, 2014 relate to temporary differences. The remainder are tax credits carry forwards.
• South America: Net deferred tax assets recognized in South America amounted to €364 million in 2014 (€379 million in 2013 and €418 million in 2012). All the deferred tax assets relate to temporary differences.
• United States: Net deferred tax assets recognized in the United States amounted to €160 million in 2014 (€130 million in 2014 and €125 million in 2012). All the deferred tax assets relate to temporary differences.

Based on the information available at year end, including historical levels of benefits and projected results available to the Bank for the coming years, it is considered that sufficient taxable income will be generated for the recovery of referred unsecured deferred tax assets when they become deductible according to the tax laws.

As of December 31, 2014, 2013 and 2012 the aggregate amount of temporary differences associated with investments in foreign subsidiaries, branches and associates and investments in joint venture entities, for which no deferred tax liabilities have been recognized in the accompanying consolidated balance sheets, were €497, €297 million and €267 million, respectively.