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CURRENT AND DEFERRED TAXES | 12 Months Ended
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Dec. 31, 2023
Disclosure Of Income Tax [Abstract] |
CURRENT AND DEFERRED TAXES | CURRENT AND DEFERRED TAXES In the year ended December 31, 2023 the income tax provision was calculated and recorded, applying the semi-integrated tax system and a rate of 27%, based on the provisions of the Law. No. 21,210, published in the Official Gazette of the Republic of Chile, dated February 24, 2020, which updates the Tax Legislation. The net result for deferred tax corresponds to the variation of the period, 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 income tax expense. (a.1)Current taxes (a.1) The composition of the current tax assets is the following:
| Current assets |  | Non-current assets |  | Total assets
| As of December 31, 2023 |  | As of December 31, 2022 |  | As of December 31, 2023 |  | As of December 31, 2022 |  | As of December 31, 2023 |  | As of December 31, 2022
| ThUS$ |  | ThUS$ |  | ThUS$ |  | ThUS$ |  | ThUS$ |  | ThUS$
Provisional monthly payments (advances) | 18,982 |  |  | 18,559 |  |  | — |  |  | — |  |  | 18,982 |  |  | 18,559 |
Other recoverable credits | 28,048 |  |  | 14,474 |  |  | — |  |  | — |  |  | 28,048 |  |  | 14,474 |
Total current tax assets | 47,030 |  |  | 33,033 |  |  | — |  |  | — |  |  | 47,030 |  |  | 33,033 |
(a.2) The composition of the current tax liabilities are as follows:
| Current liabilities |  | Non-current liabilities |  | Total liabilities
| As of December 31, 2023 |  | As of December 31, 2022 |  | As of December 31, 2023 |  | As of December 31, 2022 |  | As of December 31, 2023 |  | As of December 31, 2022
| ThUS$ |  | ThUS$ |  | ThUS$ |  | ThUS$ |  | ThUS$ |  | ThUS$
Income tax provision | 2,371 |  |  | 1,026 |  |  | — |  |  | — |  |  | 2,371 |  |  | 1,026 |
Total current tax liabilities | 2,371 |  |  | 1,026 |  |  | — |  |  | — |  |  | 2,371 |  |  | 1,026 |
(b) Deferred taxes The balances of deferred tax are the following:
| Assets |  | Liabilities
Concept | As of December 31, 2023 |  | As of December 31, 2022 |  | As of December 31, 2023 |  | As of December 31, 2022
| ThUS$ |  | ThUS$ |  | ThUS$ |  | ThUS$
Properties, Plants and equipment | (941,136) |  |  | (1,006,814) |  |  | 70,745 |  |  | 81,326 |
Assets by right of use | (585,957) |  |  | (367,112) |  |  | 54 |  |  | 70 |
Lease Liabilities | 792,781 |  |  | 586,878 |  |  | (74) |  |  | (115) |
Amortization | (112,002) |  |  | (88,172) |  |  | 10 |  |  | 10 |
Provisions | 222,409 |  |  | 9,133 |  |  | 81,091 |  |  | 69,519 |
Revaluation of financial instruments | (889) |  |  | 2,438 |  |  | — |  |  | — |
Tax losses | 613,264 |  |  | 852,654 |  |  | (86,320) |  |  | (94,005) |
Intangibles | — |  |  | — |  |  | 300,359 |  |  | 270,512 |
Other | 16,312 |  |  | 16,910 |  |  | 16,494 |  |  | 17,308 |
Total | 4,782 |  |  | 5,915 |  |  | 382,359 |  |  | 344,625 |
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 (b.1)From January 1 to December 31, 2021
| 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 | (1,396,337) |  |  | 187,644 |  |  | — |  |  | — |  |  | (1,208,693) |
Assets for right of use | (637,114) |  |  | 64,387 |  |  | — |  |  | — |  |  | (572,727) |
Lease Liabilities | 815,785 |  |  | (42,656) |  |  | — |  |  | — |  |  | 773,129 |
Amortization | (65,148) |  |  | 20,533 |  |  | — |  |  | — |  |  | (44,615) |
Provisions | 194,614 |  |  | 360,696 |  |  | (2,783) |  |  | — |  |  | 552,527 |
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) |
(b.2)From January 1 to December 31, 2022
| 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 | (1,208,693) |  |  | 120,553 |  |  | — |  |  | — |  |  | (1,088,140) |
Assets for right of use | (572,727) |  |  | 205,545 |  |  | — |  |  | — |  |  | (367,182) |
Lease Liabilities | 773,129 |  |  | (186,136) |  |  | — |  |  | — |  |  | 586,993 |
Amortization | (44,615) |  |  | (43,567) |  |  | — |  |  | — |  |  | (88,182) |
Provisions | 552,527 |  |  | (613,480) |  |  | 567 |  |  | — |  |  | (60,386) |
Revaluation of financial instruments | (16,575) |  |  | 19,248 |  |  | (235) |  |  | — |  |  | 2,438 |
Tax losses (*) | 445,662 |  |  | 500,997 |  |  | — |  |  | — |  |  | 946,659 |
Intangibles | (254,155) |  |  | 2,114 |  |  | — |  |  | (18,471) |  |  | (270,512) |
Others | (274) |  |  | (124) |  |  | — |  |  | — |  |  | (398) |
Total | (325,721) |  |  | 5,150 |  |  | 332 |  |  | (18,471) |  |  | (338,710) |
(b.3)From January 1 to December 31, 2023
| 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 | (1,088,140) |  |  | 76,259 |  |  | — |  |  | — |  |  | (1,011,881) |
Assets for right of use | (367,182) |  |  | (218,829) |  |  | — |  |  | — |  |  | (586,011) |
Lease Liabilities | 586,993 |  |  | 205,862 |  |  | — |  |  | — |  |  | 792,855 |
Amortization | (88,182) |  |  | (23,830) |  |  | — |  |  | — |  |  | (112,012) |
Provisions | (60,386) |  |  | 200,953 |  |  | 751 |  |  | — |  |  | 141,318 |
Revaluation of financial instruments | 2,438 |  |  | (6,931) |  |  | 3,604 |  |  | — |  |  | (889) |
Tax losses (*) | 946,659 |  |  | (247,075) |  |  | — |  |  | — |  |  | 699,584 |
Intangibles | (270,512) |  |  | (6,207) |  |  | — |  |  | (23,640) |  |  | (300,359) |
Others | (398) |  |  | 216 |  |  | — |  |  | — |  |  | (182) |
Total | (338,710) |  |  | (19,582) |  |  | 4,355 |  |  | (23,640) |  |  | (377,577) |
(*) Unrecognized deferred tax assets: Deferred tax assets are recognized to the extent that it is probable that sufficient taxable profits will be generated in the future. In total the Company has not recognized deferred tax assets for ThUS$3,572,528 at December 31, 2023 (ThUS$3,651,023 as of December 31, 2022) which include deferred tax assets related to negative tax results of ThUS$12,206,634 at December 31, 2023 (ThUS$14,930,487 at December 31, 2022). As stated in note 2c) the Company filed a Reorganization Plan and Disclosure Statement in which, among other items, financial forecasts were included together with the proposed issuance of new shares and convertible notes. With that information the Company´s 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 be offset by 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. As of December 31, 2022, the Management of the subsidiary Lan Cargo S.A., taking into account financial projections for future years, company derecognized DTA in the amount of Th US$6,173 because it is not probable that future taxable profits would be generated in the future. (Expenses)/income from deferred taxes and income tax:
| For the year ended at December 31,
| 2023 |  | 2022 |  | 2021
| ThUS$ |  | ThUS$ |  | ThUS$
Income tax (expense)/benefit |  |  |  |  |
Current tax (expense) benefit | (12,659) |  |  | (14,064) |  |  | (47,139) |
Adjustments to the current tax of the previous year | (193) |  |  | — |  |  | (460) |
Total current tax (expense) benefit | (12,852) |  |  | (14,064) |  |  | (47,599) |
Deferred income taxes |  |  |  |  |
(Expense)/benefit for deferred tax recognition for tax losses (*) | 17,492 |  |  | — |  |  | — |
Deferred income for relative taxes to the creation and reversal of temporary differences | (19,582) |  |  | 5,150 |  |  | (521,336) |
Total deferred income tax | (2,090) |  |  | 5,150 |  |  | (521,336) |
Income tax (expense)/benefit | (14,942) |  |  | (8,914) |  |  | (568,935) |
Income tax (expense)benefit
| For the year ended at December 31,
| 2023 |  | 2022 |  | 2021
| ThUS$ |  | ThUS$ |  | ThUS$
Current tax (expense) benefit, foreign | (10,410) |  |  | 19,573 |  |  | (9,943) |
Current tax (expense) benefit, domestic | (2,442) |  |  | (33,637) |  |  | (37,656) |
Total current tax (expense) benefit | (12,852) |  |  | (14,064) |  |  | (47,599) |
Foreign Deferred tax (expense) benefit, for tax losses compensation (*) | 17,492 |  |  | — |  |  | — |
Deferred tax (expense) benefit, foreign | (10,780) |  |  | (532) |  |  | 4,309 |
Deferred tax (expense) benefit, domestic | (8,802) |  |  | 5,682 |  |  | (525,645) |
Total deferred tax (expense)benefit | (2,090) |  |  | 5,150 |  |  | (521,336) |
Income tax (expense)/benefit | (14,942) |  |  | (8,914) |  |  | (568,935) |
(*) As a result of an agreement reached with the Brazilian tax authority TAM Linhas Aereas S.A. was authorized to use part of its available tax losses to pay some tax contingencies. As the company does not have recognized deferred tax asset for those tax losses, it was recognized as income to write off those tax contingencies. Income before tax from the Chilean legal tax rate (27% as of December 31, 2023, December 31, 2022 and December 31, 2021)
| For the year ended At December 31, |  | For the year ended At December 31,
| 2023 |  | 2022 |  | 2021 |  | 2023 |  | 2022 |  | 2021
| ThUS$ |  | ThUS$ |  | ThUS$ |  | % |  | % |  | %
Income tax benefit/(expense) using the legal tax rate | (161,053) |  |  | (363,434) |  |  | 1,102,736 |  |  | -27.00 |  |  | -27.00 |  |  | -27.00 |
Tax effect by change in tax rate | — |  |  | 9,016 |  |  | — |  |  | — |  |  | 0.67 |  |  | — |
Tax effect of rates in other jurisdictions | (50,042) |  |  | 20,398 |  |  | 54,775 |  |  | -8.39 |  |  | 1.52 |  |  | -1.34 |
Tax effect of non-taxable income | 25,459 |  |  | 1,201,618 |  |  | 9,444 |  |  | 4.27 |  |  | 89.27 |  |  | -0.23 |
Tax effect of disallowable expenses | (23,272) |  |  | (33,855) |  |  | (30,928) |  |  | -3.90 |  |  | -2.52 |  |  | 0.76 |
Other increases (decreases): |  |  |  |  |  |  |  |  |  |  |
Derecognition of deferred tax liabilities for early termination of aircraft financing | 53,162 |  |  | 90,823 |  |  | 205,458 |  |  | 8.91 |  |  | 6.75 |  |  | -5.03 |
Tax effect for goodwill impairment losses | — |  |  | — |  |  |  |  | — |  |  | — |  |  |
Derecognition of deferred tax assets not recoverable | — |  |  | (6,173) |  |  | (1,251,912) |  |  | — |  |  | -0.46 |  |  | 30.65 |
Deferred tax asset not recognized | 157,089 |  |  | (990,095) |  |  | (667,702) |  |  | 26.34 |  |  | -73.56 |  |  | 16.35 |
Other increases (decreases) | (16,285) |  |  | 62,788 |  |  | 9,194 |  |  | -2.73 |  |  | 4.66 |  |  | -0.23 |
Total adjustments to tax expense using the legal rate | 146,111 |  |  | 354,520 |  |  | (1,671,671) |  |  | 24.50 |  |  | 26.33 |  |  | 40.93 |
Income tax benefit/(expense) using the effective rate | (14,942) |  |  | (8,914) |  |  | (568,935) |  |  | -2.50 |  |  | -0.67 |  |  | 13.93 |
Deferred taxes related to items charged to equity:
| For the year ended At December 31,
| 2023 |  | 2022 |  | 2021
| ThUS$ |  | ThUS$ |  | ThUS$
Aggregate deferred taxation of components of other comprehensive income | 4,355 |  |  | 332 |  |  | (2,841) |

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