XML 104 R65.htm IDEA: XBRL DOCUMENT v3.8.0.1
Income tax and social contribution (Tables)
 12 Months Ended
Dec. 31, 2017
Income tax and social contribution (Tables) [Abstract]  
Calculation of income tax and social contribution charges

a)      Calculation of income tax and social contribution charges

 

 

R$ thousand

Years ended December 31

2017

2016

2015

Income before income tax and social contribution

23,743,559

31,905,456

9,603,583

Total burden of income tax and social contribution at the current rates (1)

(10,684,602)

(14,357,455)

(4,321,612)

Effect of additions and exclusions in the tax calculation:

 

 

 

Earnings (losses) of associates and joint ventures

773,285

764,876

687,623

Interest on shareholders' equity (paid and payable)

3,241,955

3,139,102

2,305,695

Net tax credit of deferred liabilities (2)

 

 

2,341,220

Other amounts (3)

240,406

(3,459,253)

7,621,396

Income tax and social contribution for the period

(6,428,956)

(13,912,730)

8,634,322

Effective rate

27.1%

43.6%

-89.9%

(1)     Current rates: (i) 25% for income tax; (ii) of 15% for the social contribution to financial and equated companies, and of the insurance industry, and of 20%, from September 2015 to December 2018, in accordance with Law no 13,169/15; and (iii) of 9% for the other companies (Note 2w);

(2)     In 2015, refers to, constitution of deferred tax assets, net of deferred liabilities, related to the increase in the social contribution tax rate, according to Law no 13,169/15; and

(3)     Basically, includes, (i) the exchange rate variation of assets and liabilities, derived from investments abroad; (ii) the equalization of the effective rate of social contribution in relation to the rate of 45% shown; and (iii) the deduction incentives.
Composition of income tax and social contribution in the consolidated statement of income

b)      Composition of income tax and social contribution in the consolidated statement of income

 

 

R$ thousand

Years ended December 31

2017

2016

2015

Current taxes:

 

 

 

Income tax and social contribution payable

(8,788,060)

(8,852,947)

(6,075,948)

Deferred taxes:

 

 

 

Net Addition/(realization) of temporary differences

2,950,961

(4,106,008)

11,424,595

Use of opening balances of:

 

 

 

Social contribution loss

(430,584)

(647,282)

(127,214)

Income tax loss

(331,512)

(879,276)

(65,224)

Addition on:

 

 

 

Social contribution loss

150,371

234,730

272,793

Income tax loss

19,868

338,053

731,419

Activation of the tax credit - Law No. 13,169/15:

 

 

 

Social contribution loss

- 

- 

422,853

Temporary additions

- 

- 

2,051,048

Total deferred tax expense

2,359,104

(5,059,783)

14,710,270

Income tax and social contribution

(6,428,956)

(13,912,730)

8,634,322
Deferred income tax and social contribution presented in the consolidated statement of financial position

c)      Deferred income tax and social contribution presented in the consolidated statement of financial position

 

R$ thousand

Balance on December 31, 2016

Amount recorded

Realized / Decrease (4)

Balance on December 31, 2017

Provisions of impairment of loans and advances

23,011,653

12,264,028

8,771,818

26,503,863

Provision for contingencies

7,351,234

1,782,500

1,907,251

7,226,483

Adjustment to market value of securities

5,488,482

1,724,016

3,268,623

3,943,875

Other

4,681,457

4,773,082

3,644,973

5,809,566

Total tax assets on temporary differences (3)

40,532,826

20,543,626

17,592,665

43,483,787

Income tax and social contribution losses in Brazil and abroad (3)

5,595,729

170,239

762,096

5,003,872

Adjustment to market value of available for sale (3)

493,168

576,732

1,069,900

- 

Total deferred tax assets (2)

46,621,723

21,290,597

19,424,661

48,487,659

Deferred tax liabilities (2)

3,267,808

3,557,618

817,831

6,007,595

Net deferred taxes (2)

43,353,915

17,732,979

18,606,830

42,480,064

 

R$ thousand

Balance on December 31, 2015

Balance originating from an acquired institution (1)

Amount recorded

Realized / Decrease

Balance on December 31, 2016

Provisions of impairment of loans and advances

22,617,097

3,938,976

12,948,736

16,493,156

23,011,653

Provision for contingencies

5,720,598

1,209,685

2,498,218

2,077,267

7,351,234

Adjustment to market value of securities

7,090,939

109,501

282,741

1,994,699

5,488,482

Other

3,511,581

440,457

3,135,635

2,406,216

4,681,457

Total tax assets on temporary differences (3)

38,940,215

5,698,619

18,865,330

22,971,338

40,532,826

Income tax and social contribution losses in Brazil and abroad (3)

5,761,626

787,878

572,783

1,526,558

5,595,729

Adjustment to market value of available for sale (3)

2,704,484

32,120

393,369

2,636,805

493,168

Social contribution - MP 2,158-35 (change in tax law)

113,783

- 

- 

113,783

- 

Total deferred tax assets (2)

47,520,108

6,518,617

19,831,482

27,248,484

46,621,723

Deferred tax liabilities (2)

2,894,367

3,592

1,920,479

1,550,630

3,267,808

Net deferred taxes (2)

44,625,741

6,515,025

17,911,003

25,697,854

43,353,915

 

(1)    HSBC Brasil (Note 2a);

(2)    Deferred income and social contribution tax assets and liabilities are offset in the balance sheet by taxable entity, and were R$ 4,755,748 thousand in 2017 and R$ 1,504,860 thousand in 2016;

(3)    Deferred tax assets of financial and similar companies and insurance industry were established considering the increase of the social contribution rate, determined by Law 11.727/08 and Law 13.169/15 (Note 2 x); and

(4)    Includes a write-off of tax credits, in the amount of R$ 150,040 thousand.
Expected realization of deferred tax assets on temporary differences, tax loss and negative basis of social contribution

d)      Expected realization of deferred tax assets on temporary differences, tax loss and negative basis of social contribution

 

 

R$ thousand

Temporary differences

Income tax and social contribution losses

Total

Income tax

Social contribution

Income tax

Social contribution

2018

6,189,592

4,778,522

157,668

303,794

11,429,576

2019

6,106,611

3,500,573

143,705

80,058

9,830,947

2020

5,444,841

3,163,487

139,825

78,361

8,826,514

2021

4,408,140

2,609,808

620,279

367,041

8,005,268

2022

2,534,237

1,470,379

732,490

478,318

5,215,424

After 2022

2,100,881

1,176,716

824,042

1,078,291

5,179,930

Total

26,784,302

16,699,485

2,618,009

2,385,863

48,487,659
Deferred tax liabilities

e)      Deferred tax liabilities

 

 

R$ thousand

On December 31

2017

2016

Timing differences of depreciation - finance leasing

283,232

381,119

Adjustment to market value of securities

1,215,588

213,404

Judicial deposit and others

4,508,775

2,673,285

Total

6,007,595

3,267,808
Income tax and social contribution on adjustments recognized directly in equity

f)       Income tax and social contribution on adjustments recognized directly in equity

 

 

R$ thousand

On December 31, 2017

On December 31, 2016

On December 31, 2015

Before tax

Tax (expense)/ benefit

Net of tax

Before tax

Tax (expense)/ benefit

Net of tax

Before tax

Tax (expense)/ benefit

Net of tax

Financial assets recorded as available for sale

3,418,567

(1,231,202)

2,187,365

6,298,103

(2,587,076)

3,711,027

(5,677,902)

2,273,982

(3,403,920)

Exchange differences on translations of foreign operations

23,010

5,992

29,002

(194,566)

87,555

(107,011)

118,485

(57,788)

60,697

Total

3,441,577

(1,225,210)

2,216,367

6,103,537

(2,499,521)

3,604,016

(5,559,417)

2,216,194

(3,343,223)