Income tax and deferred taxes (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure of detailed information about current and non-current tax assets [Text Block]

Current tax assets

Current tax assets	As of December ‎ 31, 2019		As of December ‎ 31, 2018
	ThUS$		ThUS$
Monthly provisional income tax payments, Chilean companies		47,283		21,172
Monthly provisional income tax payments, foreign companies		124		5,199
Corporate tax credits (1)		1,262		1,858
1st category tax absorbed by tax loss (2)		916		-
Taxes in recovery process		41,848		28,881
Total		91,433		57,110

Non-current tax assets

Non-current tax assets	As of December ‎ 31, 2019		As of December ‎ 31, 2018
	ThUS$		ThUS$
Monthly provisional income tax payments, Chilean companies compensated by the specific tax on mining activity (Lithium)		6,398		6,398
Specific tax on mining activities (IEAM) paid by Lithium (on consignment)		25,781		25,781
Total		32,179		32,179

(1)

These credits are available for Companies and are related to corporate tax payments in April of the following year. These credits include, among others, credits for training expenses (SENCE), credits for acquisition of fixed assets, donations and credits in Chile for taxes paid abroad.

(2)

This concept corresponds to the absorption of the tax losses determined by the company at the end of the year, which must be attributed to the dividends received during the year.

Disclosure of detailed information about current tax liabilities [Text Block]

Current tax liabilities

Current tax liabilities	As of December ‎ 31, 2019		As of December ‎ 31, 2018
	ThUS$		ThUS$
1st Category income tax		7,863		25,163
Foreign company income tax		9,944		21,097
Article 21 single tax		67		1,152
Total		17,874		47,412

Description of detailed information regarding income tax rates applicable for various countries [Text Block]

The income tax rate for the main countries where the Company operates is presented below:

	Income tax			Income tax
Country	2019			2018
Spain		25	%		25	%
Belgium		29.58	%		29.58	%
Mexico		30	%		30	%
United States		21% +6	%		21% +6	%
South Africa		28	%		28	%

Disclosure of deferred taxes [text block]

(a)

Income tax assets and liabilities as of December 31, 2019 are detailed as follows:

	Net liability position
Description of deferred tax assets and liabilities as of December 31, 2019	Assets		Liabilities
	ThUS$		ThUS$
Unrealized losses		82,075		-
Property, plant and equipment and capitalized interest		-		(197,167	)
Provision of restoration and rehabilitation		7,313		-
Manufacturing expenses		-		(106,420	)
Staff severance indemnities, unemployment insurance		-		(6,000	)
Vacation accrual		5,591		-
Inventory provision		23,885		-
Materials provision		7,982		-
Forward		-		-
Employee benefits		2,689		-
Research and development expenses		-		(3,533	)
Bad debt provisions		3,542		-
Provision for legal complaints and expenses		2,546		-
Loan approval expenses		-		(3,856	)
Financial instruments recorded at market value		-		(1,287	)
specific tax on mining activity		-		(1,357	)
Tax loss benefit		2,296		-
Other		-		(2,021	)
Foreign items (other)		311		-
Balances to date		138,230		(321,641	)
Net balance				(183,411	)

(b)

Income tax assets and liabilities as of December 31, 2018 are detailed as follows

	Net liability position
Description of deferred tax assets and liabilities as of December 31, 2018	Assets		Liabilities
	ThUS$		ThUS$
Unrealized losses		75,832		-
Property, plant and equipment and capitalized interest		-		(196,843	)
Provision of restoration and rehabilitation		4,280		-
Manufacturing expenses		-		(103,760	)
Staff severance indemnities, unemployment insurance		-		(5,679	)
Vacation accrual		5,155		-
Inventory provision		28,155		-
Materials provision		6,239		-
Forward		2,169		-
Employee benefits		3,309		-
Research and development expenses		-		(2,216	)
Bad debt provisions		4,188		-
Provision for legal complaints and expenses		4,013		-
Loan approval expenses		-		(2,337	)
Financial instruments recorded at market value		-		(976	)
specific tax on mining activity		-		(3,278	)
Tax loss benefit		1,124		-
Other		5,005		-
Foreign items (other)		259		-
Balances at the reporting date		139,728		(315,089	)
Net balance				(175,361	)

Disclosure of detailed information about reconciliation of changes in deferred tax liabilities assets [Text Block]

(c)

Reconciliation of changes in deferred tax liabilities (assets) as of December 31, 2019

Reconciliation of changes in deferred tax liabilities (assets) for the year ended December 31, 2019	Deferred tax liability (asset) at beginning of period			Deferred tax expense (benefit) recognized in profit (loss) for the year			Deferred taxes related to items credited (charged) directly to equity			Total increases (decreases) in deferred tax liabilities (assets)			Deferred tax liability (asset) at end of period
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Unrealized losses		(75,832	)		(6,243	)		-			(6,243	)		(82,075	)
Property, plant and equipment and capitalized interest		196,843			324			-			324			197,167
Provision of restoration and rehabilitation		(4,280	)		(3,033	)		-			(3,033	)		(7,313	)
Manufacturing expenses		103,760			2,660			-			2,660			106,420
Staff severance indemnities, unemployment insurance		5,679			1,007			(686	)		321			6,000
Vacation accrual		(5,155	)		(436	)		-			(436	)		(5,591	)
Inventory provision		(28,155	)		4,270			-			4,270			(23,885	)
Materials provision		(6,239	)		(1,743	)		-			(1,743	)		(7,982	)
Forward		(2,169	)		(514	)		2,683			2,169			-
Employee benefits		(3,309	)		620			-			620			(2,689	)
Research and development expenses		2,216			1,317			-			1,317			3,533
Bad debt provisions		(4,188	)		646			-			646			(3,542	)
Provision for legal complaints and expenses		(4,013	)		1,467			-			1,467			(2,546	)
Loan approval expenses		2,337			1,519			-			1,519			3,856
Financial instruments recorded at market value		976			-			311			311			1,287
specific tax on mining activity		3,278			(1,905	)		(16	)		(1,921	)		1,357
Tax loss benefit		(1,124	)		(1,172	)		-			(1,172	)		(2,296	)
Other		(5,005	)		7,026			-			7,026			2,021
Foreign items (other)		(259	)		(52	)		-			(52	)		(311	)
Total temporary differences, unused losses and unused tax credits		175,361			5,758			2,292			8,050			183,411

(d)

Reconciliation of changes in deferred tax liabilities (assets) as of December 31, 2018

Reconciliation of changes in deferred tax liabilities (assets) ‎ for the year ended December 31, 2018	Deferred tax ‎ liability (asset) at ‎ beginning of ‎ period			Deferred tax ‎ expense ‎ (benefit) ‎ recognized in ‎ profit (loss) for ‎ the year			Deferred taxes ‎ related to items ‎ credited ‎ (charged) ‎ directly to ‎ equity			Total increases ‎ (decreases) in ‎ deferred tax ‎ liabilities ‎ (assets)			Deferred tax ‎ liability (asset) ‎ at end of ‎ period
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Unrealized losses		(68,544	)		(7,288	)		-			(7,288	)		(75,832	)
Property, plant and equipment and capitalized interest		211,374			(14,531	)		-			(14,531	)		196,843
Provision of restoration and rehabilitation		(3,469	)		(811	)		-			(811	)		(4,280	)
Manufacturing expenses		102,748			1,012			-			1,012			103,760
Staff severance indemnities, unemployment insurance		6,792			(667	)		(446	)		(1,113	)		5,679
Vacation accrual		(4,887	)		(268	)		-			(268	)		(5,155	)
Inventory provision		(25,172	)		(2,983	)		-			(2,983	)		(28,155	)
Materials provision		(7,107	)		868			-			868			(6,239	)
Forward		(624	)		(1,545	)		-			(1,545	)		(2,169	)
Employee benefits		(2,317	)		(992	)		-			(992	)		(3,309	)
Research and development expenses		3,501			(1,285	)		-			(1,285	)		2,216
Bad debt provisions		(4,253	)		686			(621	) ¹		65			(4,188	)
Provision for legal complaints and expenses		(5,243	)		1,230			-			1,230			(4,013	)
Loan approval expenses		2,670			(333	)		-			(333	)		2,337
Financial instruments recorded at market value		2,474			-			(1,498	)		(1,498	)		976
specific tax on mining activity		4,084			(795	)		(11	)		(806	)		3,278
Tax loss benefit		(1,437	)		313			-			313			(1,124	)
Other		(5,002	)		(64	)		61			(3	)		(5,005	)
Foreign items (other)		(305	)		46			-			46			(259	)
Total temporary differences, unused losses and unused tax credits		205,283			(27,407	)		(2,515	)		(29,922	)		175,361

(1) This corresponds to the adjustment to the beginning balance of the impairment provision for receivables against other reserves.

Disclosure of detailed information about net operating loss carryforwards [Text Block]

As of December 31, 2019 and 2018, tax loss carryforwards are detailed as follows:

Deferred taxes related to benefits for tax losses	As of December ‎ 31, 2019		As of December ‎ 31, 2018
	ThUS$		ThUS$
Chile		2,296		1,124
Total		2,296		1,124

Disclosure of detailed information about movements in deferred tax assets and liabilities [Text Block]

Movements in deferred tax assets and liabilities as of December 31, 2019 and December 31, 2018 are detailed as follows:

	Assets (liabilities)
Movements in deferred tax assets and liabilities	As of December ‎ 31, 2019			As of December ‎ 31, 2018
	ThUS$			ThUS$
Deferred tax assets and liabilities, net opening balance		(175,361	)		(205,283	)
Increase (decrease) in deferred taxes in profit or loss		(5,758	)		27,407
Increase (decrease) in deferred taxes in equity		(2,292	)		2,515
Total		(183,411	)		(175,361	)

Disclosure of detailed information about current and deferred tax expenses income [Text Block]

Current and deferred tax (expense) benefit are detailed as follows:

	Assets (liabilities)
Disclosures on income tax expense (benefit)	For the year ended ‎ December 31, 2019			For the year ended ‎ December 31, 2018			For the year ended ‎ December 31, 2017
	ThUS$			ThUS$			ThUS$
Current income tax expense
Current tax expense		(116,483	)		(207,959	)		(182,567	)
Adjustments to prior year current income tax		12,222			1,577			15,954
Current income tax expense, net, total		(104,261	)		(206,382	)		(166,613	)
Deferred tax expense
Deferred tax expense (income) relating to the creation and reversal of temporary differences		2,551			26,434			440
Tax adjustments related to the creation and reversal of temporary differences from the previous year		(8,309	)		973			-
Deferred tax expense, net, total		(5,758	)		27,407			440
Tax expense (benefit)		(110,019	)		(178,975	)		(166,173	)

Tax (expense) benefit for foreign and domestic parties are detailed as follows:

	Assets (liabilities)
Income tax (expense) benefit	For the year ended ‎ December 31, 2019			For the year ended ‎ December 31, 2018			For the year ended ‎ December 31, 2017
	ThUS$			ThUS$			ThUS$
Current income tax expense by foreign and domestic parties, net
Current income tax expense, foreign parties, net (1)		(7,394	)		(7,516	)		(14,396	)
Current income tax expense, domestic, net		(96,867	)		(198,866	)		(152,217	)
Current income tax expense, net, total		(104,261	)		(206,382	)		(166,613	)
Deferred tax expense by foreign and domestic parties, net
Current income tax benefit (expense), foreign parties, net		2,370			(1,885	)		(154	)
Current income tax expense, domestic, net		(8,128	)		29,292			594
Deferred tax expense, net, total		(5,758	)		27,407			440
Income tax expense		(110,019	)		(178,975	)		(166,173	)

(1) As a result of a tax audit over the 2017 transfer prices of our subsidiary SQM Europe N.V., an additional provision was recognized amounting ThUS$ 1,068.

Disclosure of detailed information about tax effects of other comprehensive income components [Text Block]

(i)

Disclosures on the tax effects of other comprehensive income components:

	For the year ended December 31, 2019
Income tax related to other income and expense components with a charge or ‎ credit to net equity	Amount before taxes ‎ (expense) gain			(Expense) income for ‎ income taxes			Amount after taxes
	ThUS$			ThUS$			ThUS$
Gain (loss) from defined benefit plans		(3,310	)		702			(2,608	)
Cash flow hedge		1,907			(2,683	)		(776	)
Reserve for gains (losses) from financial assets measured at fair value through other comprehensive income		1,152			(311	)		841
Total		(251	)		(2,292	)		(2,543	)

	For the year ended December 31, 2018
Income tax related to other income and expense components with a charge or ‎ credit to net equity	Amount before taxes ‎ (expense) gain			(Expense) income for ‎ income taxes		Amount after taxes
	ThUS$			ThUS$		ThUS$
Gain (loss) from defined benefit plans		(1,327	)		396		(931	)
Cash flow hedge		5,723			-		5,723
Reserve for gains (losses) from financial assets measured at fair value through other comprehensive income		(5,546	)		1,498		(4,048	)
Total		(1,150	)		1,894		744

	For the year ended December 31, 2017
Income tax related to other income and expense components with a charge or ‎ credit to net equity	Amount before taxes ‎ (expense) gain			(Expense) income for ‎ income taxes			Amount after taxes
	ThUS$			ThUS$			ThUS$
Gain (loss) from defined benefit plans		(1,401	)		282			(1,119	)
Cash flow hedge		2,184			-			2,184
Reserve for gains (losses) from financial assets measured at fair value through other comprehensive income		(26	)		(550	)		(576	)
Total		757			(268	)		489

Disclosure of reconciliation of accounting profit multiplied by applicable tax rates [Text Block]

Reconciliation between the tax (expense) benefit and the result of multipl

ing the accounting profit by the current rate in Chile:

	Expense (Benefits)
Income Tax Expense (Benefit)	As of December 31, 2019			As of December 31, ‎ 2018			As of December 31, ‎ 2017
	ThUS$			ThUS$			ThUS$
Consolidated income before taxes		390,622			621,038			594,590
Income tax rate in force in Chile		27	%		27	%		25,5	%
Tax expense using the legal rate		(105,468	)		(167,680	)		(151,620	)
Effect of royalty tax payments		(4,314	)		(4,919	)		(3,372	)
Tax effect of revenue from regular activities exempt from taxation		2,376			1,446			2,886
Tax rate effect of non-tax-deductible expenses for determining taxable profit (loss)		(2,128	)		(2,327	)		(4,764	)
Tax effect of tax rates supported abroad		(252	)		3,517			(8,061	)
IRS provision surplus (*)		-			(3,724	)		-
Other tax effects from reconciliation between accounting gains and tax expenses		(233	)		(5,288	)		(1,242	)
Tax expense using the effective rate		(110,019	)		(178,975	)		(166,173	)

(*) Internal revenue service