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v3.25.4

Tax assets and liabilities | 12 Months Ended
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Dec. 31, 2025
Notes and other explanatory information [abstract] |
Tax assets and liabilities |
| 23. | Tax assets and liabilities
a) Income tax and social contribution The total charges for the period can be reconciled with the accounting profit as follows:
Schedule of total charge for the period can be reconciled to accounting profit |  |  |
Thousand of Reais | 2025 | 2024 | 2023
Operating Profit Before Tax | 16,728,994 | 19,190,228 | 11,921,651
Tax Rate (25% income tax and 20% social contribution tax) (3) | (7,528,047) | (8,635,601) | (5,364,743)
PIS and COFINS (net of income and social contribution taxes) (1) | (4,605,498) | (3,258,281) | (3,789,866)
Non-taxable/Non-deductible: |  |  |
Equity method | 206,241 | 140,870 | 108,380
Non-Deductible Expenses Net from Non-Taxable Income (2) | 1,911,762 | 1,345,411 | 1,016,111
Adjustments: |  |  |
Recognition (Reversal) of Income/Social Contribution Taxes on Temporary Differences | 193,371 | (224,038) | 127,166
Interest on Equity | 3,376,308 | 2,589,128 | 2,660,040
Effect of CSLL (Social Contribution on Net Profit) Rate Difference (3) | 970,695 | 1,441,329 | 684,133
Other adjustments | 1,711,297 | 824,718 | 2,135,940
Income taxes | (3,763,871) | (5,776,465) | (2,422,839)
Comprising: |  |  |
Current taxes | (8,068,996) | (6,193,804) | (7,962,995)
Deferred taxes | 4,305,125 | 417,339 | 5,540,156
Taxes paid during the fiscal year | (6,509,969) | (5,423,514) | (5,892,511)
(1) | PIS and COFINS are considered as components of the profit base (net base of certain income and expenses); therefore, in accordance with IAS 12, they are recorded as income taxes.
(2) | It mainly includes the tax effect on income from updates to judicial deposits and other income and expenses that are permanent differences.
(3) | In the Consolidated Financial Statements, we account for the difference in CSLL (Social Contribution on Net Profit) tax rates of 9% (non-financial companies), 15% (financial companies), and 20% (banks).
Foreign Exchange Hedge of the Grand Cayman and Luxembourg Branches Banco Santander operates branches in the Cayman Islands and Luxembourg, which are primarily used for raising funds in international capital and financial markets, providing the Bank with credit lines that are extended to its clients for trade financing and working capital. To hedge against exchange rate fluctuations, the Bank uses derivatives and funding. According to Brazilian tax rules, gains or losses resulting from the impact of the Real's appreciation or depreciation on foreign investments are taxable or deductible for income tax/social contribution purposes, while gains or losses from derivatives used as hedging are also taxable or deductible. The purpose of these derivatives is to protect net income after taxes. The still distinct tax treatment for PIS and COFINS taxes on such exchange rate differences results in volatility in "Operating Profit before Tax" and in the "Income Tax" item. The effects of the transactions carried out, as well as the total effect of the exchange rate hedge for the fiscal years ending December 31, 2025, 2024, and 2023, are detailed below:
Schedule of foreign exchange hedge |  |  |
Thousand of Reais | 2025 | 2024 | 2023
Foreign exchange fluctuations (net) |  |  |
Gains (losses) arising from exchange rate fluctuations on the Bank’s investments in the Cayman and Luxembourg Branches | (7,474,761) | 13,627,778 | (3,281,452)
Gains (losses) on financial assets and liabilities |  |  |
Income generated from the use of derivative contracts as foreign exchange hedge | 7,838,473 | (14,292,394) | 3,444,617
Income Taxes |  |  |
Tax effect of derivative contracts used as hedge - PIS/COFINS | (363,712) | 664,616 | (163,165)
b) Effective tax rate calculation The effective tax rates are:
Schedule of effective tax rate |  |  |
Thousand of Reais | 2025 | 2024 | 2023
Operating Income Before Tax | 16,728,994 | 19,190,228 | 11,921,651
Income Tax | (3,763,871) | (5,776,465) | (2,422,839)
Effective tax rate | 22.50% | 30.10% | 20.32%
c) Tax recognized in equity In addition to the income tax recognized in the consolidated income statement, the Bank has recorded the following amounts directly in equity:
Schedule of bank recorded amounts in equity |  |  |
Thousand of Reais | 2025 | 2024 | 2023
Tax credits recognized in equity | 315,477,464 | 339,389,357 | 139,356,609
Measurement of securities at fair value through other comprehensive income | 308,792,800 | 333,401,042 | 136,550,936
Measurement of cash flow hedge | 3,032,990 | 2,607,676 | 223,487
Measurement of investment hedge | 1,421,361 | 562,353 | 562,353
Measurement of defined benefit plan | 2,230,313 | 2,818,286 | 2,019,833
Tax expenses recognized in equity | (320,585,520) | (346,808,871) | (140,799,732)
Measurement of securities at fair value through other comprehensive income | (309,559,753) | (335,837,710) | (133,417,362)
Measurement of cash flow hedge | (3,361,605) | (2,628,353) | (430,444)
Measurement of investment hedge | (1,421,361) | (1,421,361) | (1,421,361)
Measurement of defined benefit plan | (6,242,801) | (6,921,447) | (5,530,565)
Total | (5,108,056) | (7,419,514) | (1,443,123)
This pertains to deferred tax liabilities recognized in equity, arising from temporary differences accounted for in equity. d) Deferred taxes The balances of “Deferred Tax Assets” and “Deferred Tax Liabilities” are presented as follows:
Schedule of balances of tax assets and liabilities |  |  |  |  |  |
Thousand of Reais |  |  |  |  | 2025 | 2024
Deferred Tax Assets |  |  |  |  | 50,854,830 | 48,223,877
Comprising: |  |  |  |  |  |
Temporary differences (1) |  |  |  |  | 45,562,986 | 42,737,528
Tax loss |  |  |  |  | 5,291,844 | 5,486,349
Total deferred tax assets |  |  |  |  | 50,854,830 | 48,223,877
Deferred tax liabilities |  |  |  |  | 4,589,099 | 5,689,440
Comprising: |  |  |  |  |  |
Excess depreciation of leased assets |  |  |  | 414,762 | 394,257
Fair value adjustment of trading securities and derivatives |  |  |  |  | 4,174,337 | 5,295,183
Total deferred tax liabilities |  |  |  |  | 4,589,099 | 5,689,440
(1) | Temporary differences primarily related to impairment losses on loans and receivables, provisions for judicial and administrative proceedings, and the effect of the fair value on financial instruments.
The changes in the balances of “Deferred Tax Assets” and “Deferred Tax Liabilities” over the last three fiscal years were the following:
Schedule of changes in the balances of tax assets and liabilities |  |  |  |  |
Thousand of Reais | Balances at December 31, 2024 | Adjustment to Income | Fair value adjustments (1) | Other (2) | Balance on December 31, 2025
Deferred Tax Assets | 48,223,877 | 3,110,827 | (573,469) | 93,595 | 50,854,830
Temporary differences | 42,737,528 | 3,305,332 | (573,469) | 93,595 | 45,562,986
Tax loss | 5,486,349 | (194,505) | - | - | 5,291,844
Deferred Tax Liabilities: | 5,689,440 | (1,194,298) | 247,771 | (153,814) | 4,589,099
Temporary differences | 5,689,440 | (1,194,298) | 247,771 | (153,814) | 4,589,099
Total | 42,534,437 | 4,305,125 | (821,240) | 247,409 | 46,265,731
Thousand of Reais | Balances at December 31, 2023 | Adjustment to Income | Adjustments to fair value (1) | Other (2) | Balance on December 31, 2024
Deferred Tax Assets | 43,445,704 | 3,124,515 | 2,460,496 | (806,838) | 48,223,877
Temporary differences | 37,877,300 | 3,206,570 | 2,460,496 | (806,838) | 42,737,528
Tax loss | 5,561,066 | (74,717) | - | - | 5,486,349
CSLL 18% | 7,338 | (7,338) | - | - | -
Deferred Tax Liabilities: | 3,699,432 | 2,238,539 | 597,555 | (846,086) | 5,689,440
Temporary differences | 3,699,432 | 2,238,539 | 597,555 | (846,086) | 5,689,440
Total | 39,746,272 | 885,976 | 1,862,941 | 39,248 | 42,534,437
(1) Refers to the tax recognized in equity. (2) In 2025, it refers mainly to the net of deferred taxes in the amount of R$247,409 (2024 – R$39,248 and 2023 – R$63,753), which have the same counterparty and realization period. e) Expected realization of deferred tax assets
Schedule of expected realization of deferred tax assets |  |  |  |  |
| Deferred Tax Assets | Deferred Tax Liabilities
Year | Temporary differences | Tax losses | Total | Temporary differences | Total
2026 | 9,572,148 | 36,844 | 9,608,992 | 1,092,810 | 1,092,810
2027 | 6,937,859 | 1,090,696 | 8,028,555 | 1,095,782 | 1,095,782
2028 | 6,129,936 | 2,304,325 | 8,434,261 | 870,727 | 870,727
2029 | 5,162,834 | 1,854,527 | 7,017,361 | 850,912 | 850,912
2030 | 4,908,139 | 3,730 | 4,911,869 | 151,612 | 151,612
2031 to 2035 | 12,852,070 | 1,722 | 12,853,792 | 222,694 | 222,694
After 2036 | - | - | - | 304,562 | 304,562
Total | 45,562,986 | 5,291,844 | 50,854,830 | 4,589,099 | 4,589,099

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- Definition The disclosure of deferred taxes. [Refer: Deferred tax liabilities; Deferred tax assets] + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Name IAS -Number 1 -IssueDate 2024-01-01 -Paragraph 10 -Subparagraph e -URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2024-en-r&anchor=para_10_e&doctype=Standard -URIDate 2024-03-27 + Details
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