8. Income taxes

A breakdown of taxes recognized in the income statement is provided below:

(€ thousand)20142013
Current taxes:    
- Italian corporate income taxes (4,378) 30,711
- English corporate income taxes (4,330) 3,275
Total current taxes (8,708) 33,986
Deferred taxes for the period:    
- Deferred taxes (61,211) (3,339)
Total deferred taxes for the period (61,211) (3,339)
Taxes relating to prior periods - -
Total income taxes (69,919) 30,647

The amount of Italian corporate income taxes is related to the remuneration of 2014 losses transferred by the Italian branch to the Italian fi scal unit (income €1,221 thousand) and to the true-up referred to the previous year (€3,157 thousand).

The UK current corporate income taxes of €4,330 thousand are related to a current tax charge €6,665 thousand and a current tax credit of €10,995 thousand for compensation of tax losses utilized in the CNH Industrial N.V. UK tax group.

The deferred tax asset of €61,211 thousand relates to pension defi cit, UK tax losses carry forward and other timing differences.

Reconciliation between theoretical income taxes determined on the basis of tax rates applicable in the UK and income taxes reported in the financial statements is as follows:

(€ thousand)20142013
Theoretical income taxes 133,347 190,559
Difference between foreign tax rates and the statutory UK tax rate 5,727 (4,676)
Tax effect of permanent differences (150,231) (140,520)
Deferred taxes not recognized in previous periods (32,540) 1,263
Theoretical tax benefit arising from tax loss carryforwards (26,222) (15,979)
Current and deferred income tax recognized in the financial statements (69,919) 30,647

Theoretical income taxes are calculated by applying the UK corporation tax rate of 21.5% (23.25% in 2013) to the result before taxes.