Taxes


	2023	2022	2021
Current income tax (1)	12,807,005	16,791,619	6,975,549
Deferred income tax (2)	(3,310,147)	2,813,817	1,939,567
Deferred income tax – rate change (3)	1,941,995	(658,919)	(28,993)
Adjustments to prior years’ current and deferred tax (4)	77,022	17,421	(90,860)
Income tax expenses	11,515,875	18,963,938	8,795,263

(1)	The variation between 2023 and 2022 by ($3,984,614) corresponds mainly to the decrease in results obtained in the year in Ecopetrol S.A., generated by the decrease in revenues given the lower average prices of the crude basket oil, natural gas, and products, among others.

(2)

The variation between 2023 and 2022 by ($6,123,964) corresponds mainly i) to the effect of the exchange rate on loans denominated in US dollars, because of the revaluation of the Colombian peso against the US dollar in Ecopetrol S.A. and the adjustments in the surcharge rates to calculate the deferred income tax in Ecopetrol S.A and Hocol S.A., ii) Adjustment IAS 12.41 due to decrease the 20.5% in the exchange rate, among others

(3)

The variation between 2023 and 2022 by $2,600,914 corresponds mainly to the adjustments in the surcharge rates to calculate the deferred income tax in Ecopetrol S.A and Hocol S.A, according to Resolution No. 0061 of January 31, 2024, of the National Hydrocarbons Agency (ANH, by its acronym in Spanish)

(4)	The variation between 2023 and 2022 by $59,600 corresponds mainly to the adjustment to the income tax provision for fiscal year 2014 and the difference between the provision and the income tax return for fiscal year 2022 filed in 2023.

Schedule of deferred income tax


	2023	2022
Deferred tax assets (1)	10,522,725	13,392,480
Deferred tax liabilities (2)	(11,824,515)	(13,479,336)
Net deferred income tax	(1,301,790)	(86,856)

(1)

The variation corresponds mainly to the effect of the exchange difference in loans and borrowings in dollars, the updating of the actuarial calculation, variations in the elements to calculate the present value of the technical costs of the abandonment provision and the updating of projected surcharges, among others.

(2)

The variation mainly corresponds to the temporary differences related to IAS 12.41 and the deferred tax of ISA, represented by the changes related to the contractual asset CPC 47 and the deferral of income in accordance with Law 12,973/2014 in Companhia de Transmissao de Energia Eletrica Paulista (CTEEP), and lower tax deduction for the disposal of Yaros substation in Consorcio Transmantaro, among others.

Schedule of movements of deferred income tax


	2023	2022	2021
Opening balance	(86,856)	(1,825,605)	6,034,706
Deferred tax recognized in profit or loss	1,351,403	(2,162,575)	(1,854,603)
Increase due to business combination	—	96,767	(7,877,297)
Deferred tax recognized in other comprehensive income (a)	(3,726,415)	4,769,474	1,535,151
Other	—	(24,132)	(35,033)
Foreign currency translation	1,160,078	(940,785)	371,471
Closing balance	(1,301,790)	(86,856)	(1,825,605)

(a)The following is the detail of the income tax recorded in other comprehensive income:

Schedule of adjusted income tax rate


	2023
Adjusted tax
Net income tax of Colombia Business Group companies	11,533,898
(+) Tax discounts or tax credits	3,359
(-) Income tax on passive income from controlled entities abroad	(5,423)
Total Tax Adjusted	11,531,834

Adjusted profit
Profit before income tax expense of Colombia Business Group companies	48,160,689
(+)Permanent differences enshrined in law and that increase net income	9,512,825
(-) Income that does not constitute income or occasional profit, which affects accounting or financial profit	(6,694,161)
(-)Share of profits of associates and joint ventures of the respective taxable year of Colombia Business Group companies	(17,039,972)
(-) Net value of income from occasional gains that affect accounting or financial profit	(10)
(-) Exempt income due to the application of treaties to avoid double taxation	(567,826)
(-) Offsetting of tax losses or excesses of presumptive income taken in the taxable year and that did not affect the accounting profit of the period	(2,472,219)
Total Adjusted Profit	30,899,326

Adjusted tax rate	37.3	%

Income tax to add	—