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Current Tax and Deferred Taxes | 12 Months Ended
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Dec. 31, 2022
Current Tax and Deferred Taxes Disclosure [Abstract] |
Current tax and deferred taxes |
16. | Current tax and deferred taxes:
| (a) | Current Tax:
The Bank and its subsidiaries at the end of each year, have constituted a First Category Income Tax Provision, which was determined based on current tax regulations, and has been reflected in the statement of financial position net of taxes to be recovered or payable, as applicable, as of December 31, 2022 and 2021, according to the following detail:
|  | 2022 |  |  | 2021 |
|  | MCh$ |  |  | MCh$ |
Income taxes |  |  | 311,532 |  |  |  | 299,396 |
Less: |  |  |  |  |  |  |  |
Monthly prepaid taxes (PPM) |  |  | (492,990 | ) |  |  | (182,903 | )
Credit for training expenses |  |  | (2,216 | ) |  |  | (2,000 | )
Other |  |  | (2,795 | ) |  |  | (2,210 | )
Total tax (receivable) payable, net |  |  | (186,469 | ) |  |  | 112,283 |
Tax Rate |  |  | 27.00 | % |  |  | 27.00 | %
|  | 2022 |  |  | 2021 |
|  | MCh$ |  |  | MCh$ |
Current tax assets |  |  | 187,401 |  |  |  | ― |
Current tax liabilities |  |  | (932 | ) |  |  | (112,283 | )
Total tax receivable (payable), net |  |  | 186,469 |  |  |  | (112,283 | )
| (b) | Income Tax:
The Bank’s tax expense recorded for the years ended December 31, 2022, 2021 and 2021 is detailed as follows:
|  | 2022 |  |  | 2021 |  |  | 2020 |
|  | MCh$ |  |  | MCh$ |  |  | MCh$ |
Income tax expense: |  |  |  |  |  |  |  |  |
Current year taxes |  |  | 369,711 |  |  |  | 250,155 |  |  |  | 161,869 |
Tax from previous period |  |  | 2,931 |  |  |  | 3,014 |  |  |  | 813 |
Subtotal |  |  | 372,642 |  |  |  | 253,169 |  |  |  | 162,682 |
(Credit) charge for deferred taxes: |  |  |  |  |  |  |  |  |  |  |  |
Origin and reversal of temporary differences |  |  | (91,001 | ) |  |  | 20,163 |  |  |  | (58,895 | )
Subtotal |  |  | (91,001 | ) |  |  | 20,163 |  |  |  | (58,895 | )
Others |  |  | 7,568 |  |  |  | 2,637 |  |  |  | (564 | )
Net charge to income for income taxes |  |  | 289,209 |  |  |  | 275,969 |  |  |  | 103,223 |
| (c) | Reconciliation of effective tax rate:
The following table reconciles the income tax rate to the effective rate applied to determine the Bank’s income tax expense as of December 31, 2022, 2021 and 2021:
|  | 2022 |  |  | 2021 |  |  | 2020 |
|  | Tax rate % |  |  | MCh$ |  |  | Tax rate % |  |  | MCh$ |  |  | Tax rate % |  |  | MCh$ |
Income tax calculated on net income before tax |  |  | 27.00 |  |  |  | 468,453 |  |  |  | 27.00 |  |  |  | 359,717 |  |  |  | 27.00 |  |  |  | 136,310 |
Additions or deductions (*) |  |  | (10.33 | ) |  |  | (179,245 | ) |  |  | (6.27 | ) |  |  | (83,587 | ) |  |  | (7.76 | ) |  |  | (39,195 | )
Other |  |  | 0.00 |  |  |  | 1 |  |  |  | (0.01 | ) |  |  | (161 | ) |  |  | 1.21 |  |  |  | 6,108 |
Effective rate and income tax expense |  |  | 16.67 |  |  |  | 289,209 |  |  |  | 20.72 |  |  |  | 275,969 |  |  |  | 20.45 |  |  |  | 103,223 |
| (*) | The deductions of the tax rate for 2022, 2021 and 2020 mainly relate to permanent differences between tax and financial accounting rules.
| (d) | Effect of deferred taxes on income and equity:
The effects of deferred taxes on assets, liabilities and income accounts are detailed as follows:
|  | Balance as of |  |  | Effect |  |  | Balance as of |  |  | Effect |  |  | Balance as of |
|  | January 1, 2021 |  |  | Income |  |  | OCI |  |  | December 31, 2021 |  |  | Income |  |  | OCI |  |  | December 31, 2022 |
|  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |
Deferred tax assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowances for loan losses |  |  | 217,361 |  |  |  | (47,150 | ) |  |  | — |  |  |  | 170,211 |  |  |  | 47,677 |  |  |  | — |  |  |  | 217,888 |
Personnel provisions |  |  | 16,516 |  |  |  | (1,929 | ) |  |  | — |  |  |  | 14,587 |  |  |  | 5,924 |  |  |  | — |  |  |  | 20,511 |
Staff vacations |  |  | 9,164 |  |  |  | 829 |  |  |  | — |  |  |  | 9,993 |  |  |  | 1,146 |  |  |  | — |  |  |  | 11,139 |
Accrued interest and indexation adjustments from past due loans |  |  | 4,570 |  |  |  | 503 |  |  |  | — |  |  |  | 5,073 |  |  |  | 5,232 |  |  |  | — |  |  |  | 10,305 |
Staff severance indemnities provision |  |  | 1,421 |  |  |  | (67 | ) |  |  | (125 | ) |  |  | 1,229 |  |  |  | 988 |  |  |  | 35 |  |  |  | 2,252 |
Provisions of credit card expenses |  |  | 7,959 |  |  |  | 1,815 |  |  |  | — |  |  |  | 9,774 |  |  |  | (628 | ) |  |  | — |  |  |  | 9,146 |
Provisions of accrued expenses |  |  | 14,083 |  |  |  | (1,768 | ) |  |  | — |  |  |  | 12,315 |  |  |  | (486 | ) |  |  | — |  |  |  | 11,829 |
Derivative instruments adjustments |  |  | 1,361 |  |  |  | 102 |  |  |  | — |  |  |  | 1,463 |  |  |  | (261 | ) |  |  | — |  |  |  | 1,202 |
Adjustment for valuation and impairment of financial assets at fair value through OCI |  |  | — |  |  |  | 270 |  |  |  | 2,774 |  |  |  | 3,044 |  |  |  | — |  |  |  | 804 |  |  |  | 3,848 |
Leasing |  |  | 28,835 |  |  |  | 23,184 |  |  |  | — |  |  |  | 52,019 |  |  |  | 37,802 |  |  |  | — |  |  |  | 89,821 |
Other adjustments |  |  | 37,488 |  |  |  | 11,401 |  |  |  | — |  |  |  | 48,889 |  |  |  | (9,700 | ) |  |  | — |  |  |  | 39,189 |
Total Deferred tax assets |  |  | 338,758 |  |  |  | (12,810 | ) |  |  | 2,649 |  |  |  | 328,597 |  |  |  | 87,694 |  |  |  | 839 |  |  |  | 417,130 |
Deferred tax liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation of property and equipment and investment properties |  |  | 17,256 |  |  |  | (810 | ) |  |  | — |  |  |  | 16,446 |  |  |  | (5,509 | ) |  |  | — |  |  |  | 10,937 |
Adjustment for valuation and impairment of financial assets at fair value through OCI |  |  | 1,397 |  |  |  | — |  |  |  | (1,397 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Transitory assets |  |  | 6,533 |  |  |  | 1,580 |  |  |  | — |  |  |  | 8,113 |  |  |  | 995 |  |  |  | — |  |  |  | 9,108 |
Derivative instruments adjustments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Accrued interest to effective rate |  |  | 2,774 |  |  |  | (342 | ) |  |  | — |  |  |  | 2,432 |  |  |  | 4 |  |  |  |  |  |  |  | 2,436 |
Advance payment of lump-sum under union contracts |  |  | 2,234 |  |  |  | 3,434 |  |  |  | — |  |  |  | 5,668 |  |  |  | (2,980 | ) |  |  | — |  |  |  | 2,688 |
Intangible assets amortization |  |  | 5,503 |  |  |  | — |  |  |  | — |  |  |  | 5,503 |  |  |  | — |  |  |  | — |  |  |  | 5,503 |
Other adjustments |  |  | 10,544 |  |  |  | 3,491 |  |  |  | — |  |  |  | 14,035 |  |  |  | 4,183 |  |  |  | 54 |  |  |  | 18,272 |
Total Deferred tax liabilities |  |  | 46,241 |  |  |  | 7,353 |  |  |  | (1,397 | ) |  |  | 52,197 |  |  |  | (3,307 | ) |  |  | 54 |  |  |  | 48,944 |
Total Assets (Liabilities) tax, net |  |  | 292,517 |  |  |  | (20,163 | ) |  |  | 4,046 |  |  |  | 276,400 |  |  |  | 91,001 |  |  |  | 785 |  |  |  | 368,186 |

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