i) Consolidated income tax matters

The composition of income tax expense (benefit) for the years ended December 31, 2019, 2020 and 2021 is as follows:


	2019			2020			2021

In Mexico:
Current year income tax	Ps.	26,295,431		Ps.	13,407,948		Ps.	24,355,240
Deferred income tax		208,658			(9,334,246	)		(5,079,397	)
Foreign:
Current year income tax		19,830,227			12,319,690			23,412,990
Deferred income tax		3,579,739			(2,884,122	)		(14,544,064	)

Total Income tax	Ps.	49,914,055		Ps.	13,509,270		Ps.	28,144,769
Income Tax attributable to a discontinued operation
Income tax discontinued operations in Mexico (1)		—			—			(26,294,422	)
Income tax discontinued operations Foreign (1)		(1,119,479	)		(2,856,882	)		(2,571,541	)

(1)	Includes effects related to the sale of Tracfone. See Note 2Ac.

Deferred tax related to items recognized in OCI during the year:


	For the years ended December 31,
	2019			2020			2021
Remeasurement of defined benefit plans	Ps.	9,217,320		Ps.	4,151,600		Ps.	(4,760,089	)
Equity investments at fair value		(378,606	)		(665,814	)		583,892
Other		—			(35,670	)		—
Revaluation assets		—			(29,922,597	)		—

Deferred tax benefit recognized in OCI	Ps.	8,838,714		Ps.	(26,472,481	)	Ps.	(4,176,197	)

A reconciliation of the statutory income tax rate in Mexico to the consolidated effective income tax rate recognized by the Company is as follows:


	Year ended December 31,
	2019			2020			2021
Statutory income tax rate in Mexico		30.0	%		30.0	%		30.0	%
Impact of non-deductible and non-taxable items:
Tax inflation effects		3.8	%		8.6	%		7.9	%
Derivatives		(0.1	%)		(1.0	%)		(0.9	%)
Employee benefits		2.0	%		4.2	%		2.6	%
Other		2.0	%		(3.4	%)		(2.9	%)

Effective tax rate on Mexican operations		37.7	%		38.4	%		36.7	%
Tax recoveries in Brazil		—			(13.2	%)		(10.8	%)
Dividends received from associates Equity		(0.5	%)		(1.3	%)		(0.7	%)
Foreign subsidiaries and other non-deductible items, net		8.0	%		4.5	%		2.2	%

Effective tax rate from continuing operations		45.2	%		28.4	%		27.4	%
Effective tax rate from discontinued operations		10.2	%		14.4	%		19.2	%

An analysis of temporary differences giving rise to the net deferred tax

assets

is as follows:


	Consolidated statements of financial position						Consolidated statements of net income
	2020			2021			2019			2020			2021
Provisions	Ps.	19,312,081		Ps.	18,038,607		Ps.	318,843		Ps.	3,887,471		Ps.	2,324,227
Deferred revenues		6,748,101			9,041,137			(1,077,259	)		897,762			2,202,413
Tax losses carry forward		25,121,933			33,954,926			(9,873	)		2,236,244			10,352,978
Property, plant and equipment (1)		(39,459,549	)		(33,445,815	)		(1,067,307	)		3,990,750			9,246,429
Inventories		(537,404	)		135,658			(55,380	)		(2,394,485	)		814,626
Licenses and rights of use (1)		(5,177,924	)		(3,668,389	)		432,403			344,729			(151,013	)
Employee benefits		45,467,827			40,246,031			(1,019,042	)		422,473			(354,803	)
Other		14,828,012			13,520,684			(1,310,782	)		2,833,424			(4,811,396	)

Net deferred tax assets	Ps.	66,303,077		Ps.	77,822,839

Deferred tax expense in net profit for the year							Ps.	(3,788,397	)	Ps.	12,218,368		Ps.	19,623,461
Deferred tax discontinued operations								(105,986	)		73,646			143,482

(1)	As of December 31, 2020 and 2021, the balance included the effects of hyperinflation and revaluation of telecommunications towers.

Reconciliation of deferred tax assets and liabilities, net:


	2019			2020			2021
Opening balance as of January 1,	Ps.	86,613,327		Ps.	88,074,856		Ps.	66,303,077
Deferred tax benefit		(3,894,383	)		12,292,014			19,623,461
Translation effect		2,047,915			375,105			(727,099	)
Deferred tax benefit recognized in OCI		8,838,714			(26,472,481	)		(4,176,197	)
Deferred taxes acquired in business combinations		(276,568	)		(2,580,552	)		—
Hyperinflationary effect in Argentina		(5,254,149	)		(5,385,865	)		(3,540,962	)
Disposals see to 2Ac		—			—			(1,203,203	)
Related discontinued operation		—			—			1,543,762

Closing balance as of December 31,	Ps.	88,074,856		Ps.	66,303,077		Ps.	77,822,839

Presented in the consolidated statements of financial position as follows:
Deferred income tax assets	Ps.	106,167,897		Ps.	115,370,240		Ps.	127,287,934
Deferred income tax liabilities		(18,093,041	)		(49,067,163	)		(49,465,095	)

	Ps.	88,074,856		Ps.	66,303,077		Ps.	77,822,839

The deferred tax assets are in tax jurisdictions in which the Company considers that based on financial projections of its cash flows, results of operations and synergies between subsidiaries, will generate sufficient taxable income in subsequent periods to utilize or realize such assets.

The Company does not recognize a deferred tax liability related to the undistributed earnings of its subsidiaries, because it currently does not expect these earnings to be taxable or to be repatriated in the near future. The Company’s policy has been to distribute the profits when it has paid the corresponding taxes in its home jurisdiction and the tax can be accredited in Mexico.

At December 31, 2020 and 2021, the balance of the contributed capital account (“CUCA”) is Ps. 573,362,949 and Ps. 612,351,412 respectively. Effectively, on January 1, 2014, the

Cuenta de Utilidad Fiscal Neta

(“CUFIN”) is computed on an América Móvil’s stand-alone basis. The balance of the América Móvil’s stand-alone basis CUFIN amounted to Ps. 332,273,039 and Ps. 431,249,107 as of December 31, 2020 and 2021, respectively.

During 2021, America Móvil sold 100% of its participation in Tracfone Wireless, Inc (Tracfone), virtual operator of the most important mobile prepaid services in USA to Verizon Communications Inc. (“Verizon”), tax profit of this transaction was Ps. 93,968,555.

ii) Significant foreign income tax matters

Results of operations

The foreign subsidiaries determine their taxes on profits based on their individual taxable income, in accordance with the specific tax regimes of each country.

The effective income tax rate for the Company’s foreign jurisdictions was 38% in 2019, 15% in 2020 and 14.2% in 2021. The statutory tax rates in these jurisdictions vary, although many approximate 10% to 34%. The primary difference between the statutory rates and the effective rates in 2019, 2020 and 2021 was attributable to dividends received from KPN, other non-deductible items, non-taxable income and tax recoveries in Brazil and registry of benefits related to tax losses credits in Brazil and Chile and Impairment related to subsidiaries in Europe.

a.1

) In 2021, The Brazilian Federal Supreme Court’s (STF) ruled in favor of a third party’ thesis related to the unconstitutionality of incidence of the IRPJ (Income Tax in Brazil) and CSLL (Social Contribution ovr Net Profit in Brazil) on the amounts corresponding to the SELIC (Special settlement and custody system) rate received for repetition of the tax that should not be applicable, such thesis being similar to the thesis filed by subsidiaries of the Company in Brazil.

Given the more likely than not position of success of this lawsuit as consequence of the decision, with general repercussion, of the STF, Brazil updated its analysis, support documentation and forecast and recorded Ps. 2,647,919 (R$703,761) of which Ps. 2,076,594 (R$551,915) represent an excess on deferred IRPJ and CSLL and Ps. 571,325 (R$151,846) represent an excess on current IRPJ and CSLL. The subsidiaries are waiting for the necessary procedural steps to continue, to start the compensation of such amounts.

) In 2020

Claro Brasil began to use the tax benefit related to the ICMS Grant on TV based on Complementary Law 160/2017 and art. 30 of Law 12,973, as well as in recent interpretations on the subject, investment grants are not computed in determining actual profit in the amount of Ps. 1,721,453 (R$411,336). The Company kicked back the application of the benefit for the years 2018 and 2019, with a total impact of Ps. 2,748,084 (R$656,646). In 2021 the tax benefit was Ps. 1,431,164 (R$380,373).

iii) Tax losses

a) At December 31, 2021, the available tax loss carryforwards recorded in deferred tax assets are as follows on a country by country basis:


Country	Gross balance of available tax loss carryforwards at December 31, 2021		Tax-effected loss carryforward benefit
Brazil		Ps.71,910,653		Ps.24,449,622
Mexico		14,768,325		4,430,497
Europe		2,031,465		507,866
United States		432,301		112,398
Peru		356,133		105,060
Chile		16,109,194		4,349,483

Total		Ps.105,608,071		Ps.33,954,926

The tax loss carryforwards in the different countries in which the Company operates have the following terms and characteristics:

bi)

The Company has accumulated Ps. 71,910,653 in net operating loss carryforwards (NOL’s) in Brazil as of December 31, 2021. In Brazil, there is no expiration of the NOL’s. The NOL´s amount used against taxable income in each year may not exceed 30% of the taxable income for such year.

The Company believes that it is more likely than not that the accumulated balances of its net deferred tax assets are recoverable, based on the positive evidence of the Company to generate future taxable income related to the same taxation authority which will result in taxable amounts against which the available tax losses can be utilized before they expire.

bii)

The Company has accumulated Ps. 14,768,325 in tax losses in Mexico. The company estimates that there is positive evidence that allows it to use these losses, these should be reduced to the extent that it is considered likely that there will be sufficient taxable profits to allow them to recover in full or in part, the losses will only be compensated when there is a right legally required and are approved by the tax authorities in Mexico.

biii)

The Company has accumulated Ps. 2,031,465 in NOL’s in Europe as of December 31, 2021. In Europe, the NOL´s have no expiration, but its annual usage is limited to 75% of the taxable income of the year. The

realization of deferred tax assets is dependent upon the expected generation of future taxable income during the periods in which these temporary differences become deductible.

biv) The Company has accumulated Ps. 16,109,194 in NOL’s in Chile as of December 31, 2021. In Chile, the NOL´s have no expiration. The Company estimates that there is positive evidence that allows it to use these losses, these should be reduced to the extent that it is considered likely that there will be sufficient taxable profits to allow them to recover in full or in part, the losses will only be compensated when there is a right legally required and are approved by the tax authorities in Chile.

iv) Optional regime

The Mexican Tax Law establishes an optional regime for group companies called: Optional Regime for Groups of Companies. For these purposes, the integrating (controlling) company must own more than 80% of the shares with voting rights of the integrated (controlled) companies. In general terms, the Integration regime allowed deferral, for each of the companies that make up the group, and for up to three years, or sooner if certain assumptions are made, the whole of the income tax that results from considering the determination of the individual income tax to its charge is the effect derived from recognizing, indirectly, the tax losses incurred by the companies in the group for the year in question

On December 19, 2019, the integrating company submitted to the Mexican tax authorities, the notice to end to belong under the Optional Regime for Groups of Companies, which implied a payment made in January 2020 related to the deferred income tax for the years 2016-2018. From the year 2020, the group is taxable under the General Regime for Legal Persons.

v) Limiting interest deductions

The Mexican Tax Law establishes since 2020 new rules related to the limit on interest deductions, in concordance with the action 4 of Base Erosion and Profit Shifting (BEPS) project issued by the Organization for Economic Co-operation and Development (OECD), from which Mexico is member.

In general terms, each Mexican companies should calculate an adjusted Tax EBITDA, whose amount times the corporate income tax, will be the interest limit allowed to be deducted in each tax year. It is important to mention that the amount that was not deductible could be carryforward in the following ten years.

vi) Revaluation of telecommunications towers

Deferred taxes related to the revaluation of the passive infrastructure of the telecommunications towers have been calculated at the tax rate of the jurisdiction in which the subsidiaries are located.