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Income taxes | 6 Months Ended
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Jun. 30, 2024
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] |
Disclosure of income tax [text block] | 12 INCOME AND SOCIAL CONTRIBUTION TAXES The Company calculates income tax and social contribution taxes, current and deferred, based on the following rates: (i) 15% plus an additional 10% on taxable income in excess of R$240 for IRPJ; and (ii) 9% for CSLL, on the net income. Balances are recognized in the Company's income on an accruals basis. Subsidiaries domiciled in Brazil have their taxes calculated and provisioned in accordance with the current legislation and their specific tax regime, including, in some cases, the presumed profit method. Subsidiaries domiciled abroad are subject to taxation in their respective jurisdictions, according to local regulations. Deferred income and social contribution taxes are recognized at the net amounts in non-current assets or liabilities. In Brazil, Law nº. 12,973/14 revoked article 74 of Provisional Measure nº. 2,158/01 and determines that the parcel of the adjustment of the value of the investment in subsidiaries, direct and indirect, domiciled abroad, equivalent to the profit earned by them before income tax, except for exchange rate variation, must be added in the determination of taxable income and the social contribution calculation basis of the controlling entity domiciled in Brazil, at each year ended. The Company management believes in the validity of the provisions of international treaties entered by Brazil to avoid double taxation. In order to ensure its right to non-double taxation, the Company filed a lawsuit in April 2019, which aims to exempt the double taxation in Brazil, of profits earned by its subsidiary located in Austria, according to Law No. 12,973/14. Due to the preliminary injunction granted in favor of the Company in the aforementioned lawsuit, the Company decided not to add the profit from Suzano International Trading GmbH, located in Austria, when determining its taxable income and social contribution basis of the net profit of the Company for the six-month period ended June 30, 2024. There is no provision for tax related to the non-double taxation profits of such subsidiary in 2024. For the six-month period ended June 30, 2024, there were no changes on the disclosure about uncertain tax positions for income tax and social contribution (IFRIC 23), which were disclosed in the annual financial statements of December 31, 2023. 12.1 Deferred taxes 12.1.1 Deferred income and social contribution taxes
|  | 06/30/2024 |  | 12/31/2023
Tax loss |  | 1,086,797 |  |  | 1,209,968 |
Negative tax basis of social contribution |  | 416,088 |  |  | 457,030 |
Assets - temporary differences |  |  |  |
Provision for judicial liabilities |  | 331,519 |  |  | 324,158 |
Operating provisions and other losses |  | 1,129,889 |  |  | 1,214,807 |
Exchange rate variations |  | 5,233,284 |  |  | 2,384,153 |
Derivatives losses (“MtM”) |  | 628,221 |  |  |
Amortization of fair value adjustments arising from business combinations |  | 633,847 |  |  | 654,358 |
Unrealized profit on inventories |  | 453,809 |  |  | 151,578 |
Leases |  | 491,931 |  |  | 356,110 |
|  | 10,405,385 |  |  | 6,752,162 |
Liabilities - temporary differences |  |  |  |
Goodwill - tax benefit on unamortized goodwill |  | 1,445,770 |  |  | 1,301,654 |
Property, plant and equipment - deemed cost |  | 1,103,321 |  |  | 1,137,483 |
Depreciation for tax-incentive reason (1) |  | 766,530 |  |  | 799,857 |
Capitalized loan costs |  | 920,058 |  |  | 640,063 |
Fair value of biological assets |  | 1,153,340 |  |  | 1,115,432 |
Deferred taxes, net of fair value adjustments |  | 356,612 |  |  | 370,947 |
Tax credits - gains from tax lawsuit (exclusion of ICMS from the PIS and COFINS basis) |  | 148,130 |  |  | 150,691 |
Derivatives gains (“MtM”) |  |  |  |  | 678,090 |
Provision of deferred taxes on results of subsidiaries abroad |  | 81,381 |  |  |  |
Other temporary differences |  | 24,438 |  |  | 24,109 |
|  | 5,999,580 |  |  | 6,218,326 |
Non-current assets |  | 4,418,401 |  |  | 545,213 |
Non-current liabilities |  | 12,596 |  |  | 11,377 |
(1)Tax depreciation is taken as a benefit only in the income tax calculation bases. 12.1.2 Breakdown of accumulated tax losses and social contribution tax losses carried forward
|  | 06/30/2024 |  | 12/31/2023
Tax loss carried forward |  | 4,347,188 |  |  | 4,839,872 |
Negative tax basis of social contribution carried forward |  | 4,623,200 |  |  | 5,078,111 |
12.1.3 Roll-forward of deferred tax assets
|  | 06/30/2024 |  | 12/31/2023
Opening balance |  | 533,836 |  |  | 3,985,297 |
Tax loss |  | (123,171) |  |  | 2,872 |
Negative tax basis of social contribution |  | (40,942) |  |  | 11,780 |
Provision for judicial liabilities |  | 7,361 |  |  | 55,562 |
Operating provisions and other losses |  | (84,918) |  |  | 215,779 |
Exchange rate variation |  | 2,849,131 |  |  | (1,913,350) |
Derivative (gains) losses (“MtM”) |  | 1,306,311 |  |  | (668,926) |
Amortization of fair value adjustments arising from business combinations |  | (6,176) |  |  | 2,219 |
Unrealized profit on inventories |  | 302,231 |  |  | (211,474) |
Leases |  | 135,821 |  |  | (8,728) |
Goodwill - tax benefit on unamortized goodwill |  | (144,116) |  |  | (278,551) |
Property, plant and equipment - deemed cost |  | 34,162 |  |  | 79,866 |
Depreciation accelerated for tax-incentive reason |  | 33,327 |  |  | 70,140 |
Capitalized loan costs |  | (279,995) |  |  | (429,229) |
Fair value of biological assets |  | (37,908) |  |  | (412,158) |
Deferred taxes on the results of subsidiaries abroad |  | (81,381) |  |  |  |
Credits on exclusion of ICMS from the PIS/COFINS tax base |  | 2,561 |  |  | 43,430 |
Other temporary differences |  | (329) |  |  | (10,693) |
Closing balance |  | 4,405,805 |  |  | 533,836 |
12.2 Reconciliation of the effects of income tax and social contribution on profit or loss
|  | 06/30/2024 |  | 06/30/2023
Net income (loss) before taxes |  | (6,947,851) |  | 14,380,751
Income tax and social contribution benefit (expense) at statutory nominal rate of 34% |  | 2,362,269 |  | (4,889,455)
Tax effect on permanent differences |  |  |  |
Taxation (difference) on profit of associates in Brazil and abroad (1) |  | 1,017,293 |  | 815,768
Equity method |  | (1,195) |  | 143
Thin capitalization (2) |  |  |  | (27,114)
Credit related to Reintegra Program |  | 4,807 |  | 3,694
Director bonuses |  | (9,347) |  | (3,481)
Tax incentives |  | 26,912 |  | 41,769
Donations/Fines – Other |  | 1,626 |  | (1,659)
|  | 3,402,366 |  | (4,060,335)
Income tax |  |  |  |
Current |  | (370,788) |  | (193,265)
Deferred |  | 2,852,815 |  | (2,830,430)
|  | 2,482,027 |  | (3,023,695)
Social Contribution |  |  |  |
Current |  | (99,416) |  | (17,738)
Deferred |  | 1,019,755 |  | (1,018,902)
|  | 920,339 |  | (1,036,640)
Income and social contribution benefits (expenses) on the period |  | 3,402,366 |  | (4,060,335)
Effective rate of income and social contribution tax expenses |  | 48.97 | % |  | 28.23 | %
(1)The difference in the taxation of subsidiaries is substantially due to the differences between the nominal tax rates in Brazil and those of subsidiaries located abroad. (2)The Brazilian thin capitalization rules establish that interest paid or credited by a Brazilian entity to a related party abroad may only be deducted for income tax and social contribution purposes if the interest expense is viewed as necessary for the activities of the local entity, and when certain limits and requirements are met. On June 30, 2024, all limits and requirements were met, and on June 30, 2023, the Company did not meet all of the limits and requirements, and therefore the expense is not deductible for the period. 12.3 Tax incentives The Company benefits from a tax incentive for partial reduction of the income tax obtained from operations carried out in areas under the jurisdiction of the Northeast Development Superintendence (“SUDENE”) and the Superintendence of Amazon Development (“SUDAM”). The IRPJ reduction incentive is calculated based on the activity profits (exploitation profits) and considers the allocation of the operating profit based on the incentive production levels for each product.
Area/Regions |  | Company |  | Maturity
Northeast Development Superintendence (“SUDENE”) |  |  |  |
Eunápolis (BA) |  | Veracel |  | 2025
Aracruz (ES) |  | Portocel |  | 2030
Aracruz (ES) |  | Suzano |  | 2031
Imperatriz (MA) |  | Suzano |  | 2032
Mucuri (BA) |  | Suzano |  | 2032
Superintendence of Amazon Development (“SUDAM”) |  |  |  |
Belém (PA) |  | Suzano |  | 2025
12.4 OECD PILLAR TWO MODEL RULES In December 2021, the Organisation for Economic Co-operation and Development (“OECD”) announced the guidelines for the Pillar Two model, aiming for a reform in international corporate taxation to ensure that multinational economic groups, covered by such regulations, contribute an effective minimum tax at a rate of 15% on profits. Each country's effective profit tax rate, as calculated by this model, is called the GloBE (Global Anti-Base Erosion Rules) effective tax rate. These rules await approval in the local legislation of each country. In the context of Suzano, compliance with OECD guidelines on international taxation is a strategic priority. Many countries have already released legislation or plans on the adoption of Pillar Two rules and the calculation of GloBE revenue, considering the global minimum rate of 15% for multinationals with consolidated revenue above EUR750 million. The Company is monitoring the jurisdictions where the legislation was approved and is in force, as well as the progress of the legislative process in other countries, in order to map the potential effects on its operations. From 2024, the Company is subject to OECD Pillar Two model rules in some European jurisdictions, with emphasis only on Austria. There was no material impact on this unaudited condensed consolidated interim financial information due to this topic.

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