XML 114 R19.htm IDEA: XBRL DOCUMENT
v3.19.1

Current and deferred taxes | 12 Months Ended
--- | ---
Dec. 31, 2018
Current and deferred taxes |
Current and deferred taxes | 12. Current and deferred taxes The Company, based on expected generation of future taxable income as determined by a technical study approved by Management, recognized deferred tax assets over temporary differences, income and social contribution tax loss carryforwards, which do not expire. Deferred income and social contribution taxes are originated as follows:
|  | 12/31/2018 |  | 12/31/2017
Income tax loss carryforward |  | 310,293 |  | 575,248
Social contribution tax loss carryforward |  | 6,627 |  | 29,830
Provision for tax, civil and labor liabilities |  | 101,667 |  | 103,631
Temporary differences provision (operational and others) |  | 286,616 |  | 203,831
Exchange variation losses (net) - payable on a cash basis for tax purposes |  | 534,093 |  | 82,793
Losses on derivatives |  | 291,254 |  | 29,943
Unrealized profit |  | 227,830 |  | 103,376
Other temporary differences |  | 15,579 |  | 8,674
Non-current assets |  | 1,773,959 |  | 1,137,326
Tax benefit of goodwill - goodwill not amortized for accouting purposes |  | 13,161 |  | 10,063
Property, plant and equipment - deemed cost adjustment |  | 1,552,579 |  | 1,603,987
Tax accelerated depreciation |  | 1,196,182 |  | 1,183,115
Other temporary differences |  | 41,172 |  | 124,968
Non-current liabilities |  | 2,803,094 |  | 2,922,133
Total non-current assets, net |  | 8,998 |  | 2,606
Total non-current liabilities, net |  | 1,038,133 |  | 1,787,413
The income tax loss carryforward, negative basis of social contribution and accelerated depreciation are only achieved by the Income Tax (IRPJ). The breakdown of accumulated tax losses and social contribution tax loss carryforwards is shown below:
|  | 12/31/2018 |  | 12/31/2017
Tax loss carryforward |  | 1,241,172 |  | 2,300,993
Social contribution tax loss carryforward |  | 73,633 |  | 331,445
12.1 Reconciliation of the effects of income tax and social contribution on profit or loss
|  | 12/31/2018 |  | 12/31/2017
Net income (loss) before taxes |  | 165,297 |  | 2,259,612
Income tax and social contribution benefit (expense) at statutory nominal rate - 34% |  | (56,201) |  | (768,268)
Tax effect on permanent differences: |  |  |  |
Taxation on profit of subsidiaries abroad |  | (160,252) |  | (104,918)
Tax incentive - Reduction SUDENE (a) |  | 261,910 |  | 196,604
Equity method |  | 2,576 |  | 1,996
Taxation difference - Subsidiaries (b) |  | 62,813 |  | 151,504
Credit related to Reintegra program |  | 37,627 |  | 39,180
Interest on own capital |  | — |  | 67,944
Higher taxation on foreign subsidiaries |  | (2,553) |  | (11,789)
Tax Incentives applied to Income Tax (d) |  | 20,505 |  | 9,414
Unrealized profit on operations with subsidiaries (c) |  | 16,786 |  | 17,011
Other |  | (28,694) |  | (3,273)
|  | 154,516 |  | (438,618)
Income tax |  |  |  |
Current |  | (300,438) |  | (80,607)
Deferred |  | 604,190 |  | (189,203)
|  | 303,752 |  | (269,810)
Social Contribution |  |  |  |
Current |  | (286,130) |  | (121,580)
Deferred |  | 136,894 |  | (47,228)
|  | (149,236) |  | (168,808)
Income and social contribution benefits (expenses) on the year |  | 154,516 |  | (438,618)
Effective rate of income and social contribution tax expenses (e) |  | -93.5% |  | 19.4%
| (a) |  | Refers to the benefit of reducing 75% of the income tax calculated based on Profits form exploration on the units Mucuri (BA) and Imperatriz (MA).
| (b) |  | Refers, substantially, to the difference between the nominal rate of the Company and its subsidiaries in Brazil and abroad.
| (c) |  | Refers to the cost of inventories that correspond to results not yet realized in intercompany operations
| (d) |  | Income tax deduction amount referring to the use of the PAT (Worker Feeding Program) benefit and donations made in cultural and sports projects.
| (e) |  | In 2018, the effective rate of (93.5%) was determined mainly due to lower net income before taxes and an increase in the tax benefit of the operating profit.
12.2 Tax incentives Suzano has a tax incentive for the partial reduction of the income tax obtained by the operations carried out in areas of the Northeast Development Superintendency (SUDENE) in the Mucuri (BA) and Imperatriz (MA) regions. The IRPJ reduction incentive is calculated based on the activity profit (operating profit), and takes into account the allocation of the operating profit by the incentive production levels for each product. The Incentive of Lines 1 and 2 of Mucuri (BA) expire respectively in 2024 and 2027 and the unit of Imperatriz in 2024. During the period from 2006 to 2018, Suzano benefited from Accelerated Incentive Depreciation ("DAI"), which was applicable to the acquisition of property, plant and equipment and consisted of the depreciation of the asset in the same year of acquisition or until the 4th year after the acquisition. This benefit expired on December 31, 2018.

X
- Definition The entire disclosure for income taxes. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 12 -IssueDate 2018-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/XBRL?type=IAS&num=12&date=2018-03-01&anchor=sect_Disclosure&doctype=Standard -URIDate 2018-03-16 + 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: | ifrs-full_MajorComponentsOfTaxExpenseIncomeAbstract
Namespace Prefix: | ifrs-full_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration