XML 92 R24.htm IDEA: XBRL DOCUMENT
v3.22.1

CURRENT AND DEFERRED TAXES | 12 Months Ended
--- | ---
Dec. 31, 2021
Disclosure of income tax [text block] [Abstract] |
CURRENT AND DEFERRED TAXES | NOTE 18 - CURRENT AND DEFERRED TAXES In the year ended December 31, 2021, the income tax provision was calculated for such period, applying the partially semi-integrated taxation system and a rate of 27%, in accordance with the Law No. 21,210, which modernizes the Tax Legislation, published in the Journal of the Republic of Chile, dated February 24, 2020. The net result for deferred tax corresponds to the variation of the year, of the assets and liabilities for deferred taxes generated by temporary differences and tax losses. For the permanent differences that give rise to a book value of assets and liabilities other than their tax value, no deferred tax has been recorded since they are caused by transactions that are recorded in the financial statements and that will have no effect on spending tax for income tax.
| (a) | Current taxes
(a.1) The composition of the current tax assets is the following:
|  | Current assets |  |  | Non-current assets |  |  | Total assets |
|  | As of |  |  | As of |  |  | As of |  |  | As of |  |  | As of |  |  | As of |
|  | December 31, |  |  | December 31, |  |  | December 31, |  |  | December 31, |  |  | December 31, |  |  | December 31, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
|  |  | ThUS$ |  |  |  | ThUS$ |  |  |  | ThUS$ |  |  |  | ThUS$ |  |  |  | ThUS$ |  |  |  | ThUS$ |
Provisional monthly payments (advances) |  |  | 32,086 |  |  |  | 36,788 |  |  |  | - |  |  |  | - |  |  |  | 32,086 |  |  |  | 36,788 |
Other recoverable credits |  |  | 9,171 |  |  |  | 5,532 |  |  |  | - |  |  |  | - |  |  |  | 9,171 |  |  |  | 5,532 |
Total current tax assets |  |  | 41,257 |  |  |  | 42,320 |  |  |  | - |  |  |  | - |  |  |  | 41,257 |  |  |  | 42,320 |
(a.2) | The composition of the current tax liabilities are as follows:
|  | Current liabilities |  |  | Non-current liabilities |  |  | Total liabilities |
|  | As of |  |  | As of |  |  | As of |  |  | As of |  |  | As of |  |  | As of |
|  | December 31, |  |  | December 31, |  |  | December 31, |  |  | December 31, |  |  | December 31, |  |  | December 31, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
|  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |
Income tax provision |  |  | 675 |  |  |  | 656 |  |  |  | - |  |  |  | - |  |  |  | 675 |  |  |  | 656 |
Total current tax liabilities |  |  | 675 |  |  |  | 656 |  |  |  | - |  |  |  | - |  |  |  | 675 |  |  |  | 656 |
(b) Deferred taxes The balances of deferred tax are the following:
|  | Assets |  |  | Liabilities |
|  | As of |  |  | As of |  |  | As of |  |  | As of |
Concept |  | December 31, |  |  | December 31, |  |  | December 31, |  |  | December 31, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
|  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |
Properties, Plants and equipment |  |  | (1,128,225 | ) |  |  | (1,314,456 | ) |  |  | 80,468 |  |  |  | 81,881 |
Assets by right of use |  |  | 715,440 |  |  |  | 229,119 |  |  |  | (68 | ) |  |  | (136 | )
Amortization |  |  | (44,605 | ) |  |  | (65,139 | ) |  |  | 10 |  |  |  | 9 |
Provisions |  |  | 111,468 |  |  |  | 212,492 |  |  |  | 74,047 |  |  |  | 68,462 |
Revaluation of financial instruments |  |  | (16,575 | ) |  |  | (18,133 | ) |  |  | - |  |  |  | - |
Tax losses |  |  | 358,284 |  |  |  | 1,496,952 |  |  |  | (87,378 | ) |  |  | (60,785 | )
Intangibles |  |  | - |  |  |  | - |  |  |  | 254,155 |  |  |  | 270,681 |
Other |  |  | 19,503 |  |  |  | 23,981 |  |  |  | 19,777 |  |  |  | 24,168 |
Total |  |  | 15,290 |  |  |  | 564,816 |  |  |  | 341,011 |  |  |  | 384,280 |
The balance of deferred tax assets and liabilities are composed primarily of temporary differences to be reversed in the long term. Movements of Deferred tax assets and liabilities (a) From January 1 to December 31, 2019
|  | Opening |  |  | Recognized in |  |  | Recognized in |  |  | Exchange |  |  | Ending |
|  | balance |  |  | consolidated |  |  | comprehensive |  |  | rate |  |  | balance |
|  | Assets/(liabilities) |  |  | income |  |  | income |  |  | variation |  |  | Asset (liability) |
|  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |
Property, plant and equipment |  |  | (1,582,496 | ) |  |  | 67,237 |  |  |  | - |  |  |  | 1,355 |  |  |  | (1,513,904 | )
Assets for right of use |  |  | 85,752 |  |  |  | 47,729 |  |  |  | - |  |  |  | - |  |  |  | 133,481 |
Amortization |  |  | (56,863 | ) |  |  | 3,345 |  |  |  | - |  |  |  | 382 |  |  |  | (53,136 | )
Provisions |  |  | 37,328 |  |  |  | 13,881 |  |  |  | 2,873 |  |  |  | (10,515 | ) |  |  | 43,567 |
Revaluation of financial instruments |  |  | (13 | ) |  |  | 10,142 |  |  |  | 414 |  |  |  | (264 | ) |  |  | 10,279 |
Tax losses |  |  | 1,369,150 |  |  |  | (10,116 | ) |  |  | - |  |  |  | (2,766 | ) |  |  | 1,356,268 |
Intangibles |  |  | (351,238 | ) |  |  | (11,718 | ) |  |  | - |  |  |  | 13,874 |  |  |  | (349,082 | )
Others |  |  | (14,662 | ) |  |  | 5,844 |  |  |  | - |  |  |  | 125 |  |  |  | (8,693 | )
Total |  |  | (513,042 | ) |  |  | 126,344 |  |  |  | 3,287 |  |  |  | 2,191 |  |  |  | (381,220 | )
(b) From January 1 to December 31, 2020
|  | Opening balance Assets/ (liabilities) |  |  | Recognized in consolidated income |  |  | Recognized in comprehensive income |  |  | Exchange rate variation |  |  | Ending balance Asset (liability) |
|  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |
Property, plant and equipment |  |  | (1,513,904 | ) |  |  | 110,010 |  |  |  | - |  |  |  | 7,557 |  |  |  | (1,396,337 | )
Assets for right of use |  |  | 133,481 |  |  |  | 95,774 |  |  |  | - |  |  |  | - |  |  |  | 229,255 |
Amortization |  |  | (53,136 | ) |  |  | (14,142 | ) |  |  | - |  |  |  | 2,130 |  |  |  | (65,148 | )
Provisions |  |  | 43,567 |  |  |  | 158,178 |  |  |  | 924 |  |  |  | (58,639 | ) |  |  | 144,030 |
Revaluation of financial instruments |  |  | 10,279 |  |  |  | (27,901 | ) |  |  | 959 |  |  |  | (1,470 | ) |  |  | (18,133 | )
Tax losses |  |  | 1,356,268 |  |  |  | 216,897 |  |  |  | - |  |  |  | (15,428 | ) |  |  | 1,557,737 |
Intangibles |  |  | (349,082 | ) |  |  | 1,030 |  |  |  | - |  |  |  | 77,371 |  |  |  | (270,681 | )
Others |  |  | (8,693 | ) |  |  | 6,541 |  |  |  | - |  |  |  | 1,965 |  |  |  | (187 | )
Total |  |  | (381,220 | ) |  |  | 546,387 |  |  |  | 1,883 |  |  |  | 13,486 |  |  |  | 180,536 |
(c) From January 1 to December 31, 2021
|  | Opening |  |  | Recognized in |  |  | Recognized in |  |  | Exchange |  |  | Ending |
|  | balance |  |  | consolidated |  |  | comprehensive |  |  | rate |  |  | balance |
|  | Assets/(liabilities) |  |  | income |  |  | income |  |  | variation |  |  | Asset (liability) |
|  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |
Property, plant and equipment |  |  | (1,396,337 | ) |  |  | 187,644 |  |  |  | - |  |  |  | - |  |  |  | (1,208,693 | )
Assets for right of use |  |  | 229,255 |  |  |  | 486,253 |  |  |  | - |  |  |  | - |  |  |  | 715,508 |
Amortization |  |  | (65,148 | ) |  |  | 20,533 |  |  |  | - |  |  |  | - |  |  |  | (44,615 | )
Provisions |  |  | 144,030 |  |  |  | (103,826 | ) |  |  | (2,783 | ) |  |  | - |  |  |  | 37,421 |
Revaluation of financial instruments |  |  | (18,133 | ) |  |  | 1,616 |  |  |  | (58 | ) |  |  | - |  |  |  | (16,575 | )
Tax losses (*) |  |  | 1,557,737 |  |  |  | (1,112,075 | ) |  |  | - |  |  |  | - |  |  |  | 445,662 |
Intangibles |  |  | (270,681 | ) |  |  | (1,394 | ) |  |  | - |  |  |  | 17,920 |  |  |  | (254,155 | )
Others |  |  | (187 | ) |  |  | (87 | ) |  |  | - |  |  |  | - |  |  |  | (274 | )
Total |  |  | 180,536 |  |  |  | (521,336 | ) |  |  | (2,841 | ) |  |  | 17,920 |  |  |  | (325,721 | )
Unrecognized deferred tax assets: Deferred tax assets are recognized to the extent that it is probable that the corresponding tax benefit will be realized in the future. In total the company has not recognized deferred tax assets for ThUS$ 2,638,473 (ThUS$ 749,100 as of December 31, 2020) which include deferred tax assets related to negative tax results of ThUS$ 9,030,059 (ThUS$ 1,433,474 at December 31, 2020).
(*) | As stated in note 2c), on November 26th, 2021 the Company filed a Reorganization Plan and Disclosure Statement in which, among other items, financial forecasts are included together with the proposed issuance of new shares and convertible bonds. With the referred information, the Company management updated its analysis on the recoverability of deferred tax assets and determined that during the time covered by the financial forecast it will not be probable that part of such deferred tax assets may offset future taxable profits. Therefore, the Company during the fourth quarter of 2021 derecognized deferred tax assets not considered recoverable in the amount of THUS$1,251,912.
Deferred tax expense and current income/(loss) taxes:
|  | For the year ended |
|  | December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |
Current tax expense |  |  |  |  |  |  |  |  |
Current tax expense |  |  | (47,139 | ) |  |  | 3,602 |  |  |  | (72,999 | )
Adjustment to previous period’s current tax |  |  | (460 | ) |  |  | 199 |  |  |  | 352 |
Total current tax expense, net |  |  | (47,599 | ) |  |  | 3,801 |  |  |  | (72,647 | )
Deferred tax expense |  |  |  |  |  |  |  |  |  |  |  |
Deferred expense for taxes related to the creation and reversal of temporary differences |  |  | (521,336 | ) |  |  | 546,387 |  |  |  | 126,344 |
Total deferred tax expense, net |  |  | (521,336 | ) |  |  | 546,387 |  |  |  | 126,344 |
Income/(loss) tax expense |  |  | (568,935 | ) |  |  | 550,188 |  |  |  | 53,697 |
Composition of income/(loss) tax expense:
|  | For the year ended |
|  | December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |
Current tax expense, net, foreign |  |  | (9,943 | ) |  |  | (4,232 | ) |  |  | (76,806 | )
Current tax expense, net, Chile |  |  | (37,656 | ) |  |  | 8,033 |  |  |  | 4,159 |
Total current tax expense, net |  |  | (47,599 | ) |  |  | 3,801 |  |  |  | (72,647 | )
Deferred tax expense, net, foreign |  |  | 4,309 |  |  |  | (235,963 | ) |  |  | (37,294 | )
Deferred tax expense, net, Chile |  |  | (525,645 | ) |  |  | 782,350 |  |  |  | 163,638 |
Deferred tax expense, net, total |  |  | (521,336 | ) |  |  | 546,387 |  |  |  | 126,344 |
Income tax (expense)/benefit |  |  | (568,935 | ) |  |  | 550,188 |  |  |  | 53,697 |
Income before tax from the Chilean legal tax rate (27% as of December 31, 2021 and 2020)
|  | For the year ended December 31, |  |  | For the year ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |  |  | 2021 |  |  | 2020 |  |  | 2019 |
|  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | % |  |  | % |  |  | % |
Tax expense using the legal rate |  |  | 1,102,736 |  |  |  | 1,378,547 |  |  |  | (38,318 | ) |  |  | (27.00 | ) |  |  | (27.00 | ) |  |  | (27.00 | )
Tax effect of rates in other jurisdictions |  |  | 54,775 |  |  |  | 58,268 |  |  |  | (20,082 | ) |  |  | (1.34 | ) |  |  | (1.14 | ) |  |  | (14.15 | )
Tax effect of non-taxable operating revenues |  |  | 9,444 |  |  |  | 19,529 |  |  |  | 13,125 |  |  |  | (0.23 | ) |  |  | (0.38 | ) |  |  | 9.25 |
Tax effect of disallowable expenses |  |  | (30,928 | ) |  |  | (40,528 | ) |  |  | (66,257 | ) |  |  | 0.76 |  |  |  | 0.79 |  |  |  | (46.69 | )
Other increases (decreases): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derecognition of deferred tax liabilities for early termination of aircraft financing |  |  | 205,458 |  |  |  | 294,969 |  |  |  | 145,930 |  |  |  | (5.03 | ) |  |  | (5.78 | ) |  |  | 102.83 |
Tax effect for goodwill impairment losses |  |  | - |  |  |  | (453,681 | ) |  |  | - |  |  |  | - |  |  |  | 8.89 |  |  |  | - |
Derecognition of deferred tax assets not recoverable |  |  | (1,251,912 | ) |  |  | (237,637 | ) |  |  | - |  |  |  | 30.65 |  |  |  | 4.65 |  |  |  | - |
Deferred tax asset not recognized |  |  | (667,702 | ) |  |  | (414,741 | ) |  |  | - |  |  |  | 16.35 |  |  |  | 8.12 |  |  |  | - |
Other increases (decreases): |  |  | 9,194 |  |  |  | (54,538 | ) |  |  | 19,299 |  |  |  | (0.23 | ) |  |  | 1.07 |  |  |  | 13.60 |
Total adjustments to tax expense using the legal rate |  |  | (1,671,671 | ) |  |  | (828,359 | ) |  |  | 92,015 |  |  |  | 40.93 |  |  |  | 16.22 |  |  |  | 64.84 |
Tax expense using the effective rate |  |  | (568,935 | ) |  |  | 550,188 |  |  |  | 53,697 |  |  |  | 13.93 |  |  |  | (10.78 | ) |  |  | 37.84 |
Deferred taxes related to items charged to equity:
|  | For the year ended |
|  | December 31, |
|  | 2021 |  |  | 2020 |
|  | ThUS$ |  |  | ThUS$ |
Aggregate deferred taxation of components of other comprehensive income |  |  | (2,841 | ) |  |  | 1,883 |

X
- Definition The entire disclosure for income taxes. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 12 -IssueDate 2021-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=12&code=ifrs-tx-2021-en-r&doctype=Standard&dita_xref=IAS12_g79-88_TI -URIDate 2021-03-24 + Details
Name: | ifrs-full_DisclosureOfIncomeTaxExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | ltm_DisclosureOfIncomeTaxTextBlockAbstract
Namespace Prefix: | ltm_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration