Income tax prepayments
On 16 April 2013 the Company concluded an agreement with the government of Perm Region to maintain minimum income tax payments at certain minimum amount per year in 2013-2015. In subsequent periods the addenda to this agreement were signed. In particular, on 27 August 2015 the Company signed an Addendum to the agreement which determined minimum income tax payments for 2015 at the amount of 2,750 RR mln per year (US$ 45,337 at the exchange rate on 31 December 2016). On 25 May 2016, a new Addendum was signed which determined payments for 2016 at the amount of 1,500 RR mln per year (US$ 24,729 at the exchange rate on 31 December 2016).
As at 31 December 2016 income tax prepayments recoverable in more than 12 months were recorded at amortised cost using the discount rate of 8.4%. As at 31 December 2016 the carrying value of income tax prepayments recoverable in more than 12 months was US$ 26,222 (31 December 2015: US$ 82,218 at a discount rates of 10.1%).