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Income tax (Tables) | 3 Months Ended | 12 Months Ended
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Mar. 31, 2020 | Dec. 31, 2019
Text Block [Abstract] |  |
Summary Of Temporary Difference, Unused Tax Losses And Unused Tax Credit | Deferred tax assets (DTA) and deferred tax liabilities (DTL) are comprised of the main following components:
|  | Balance Sheet |  |  | Net change in the three months period ended |
|  | March 31, 2020 |  |  | December 31, 2019 |  |  | March 31, 2020 |  |  | March 31, 2019 |
Tax losses carryforwards |  |  | 39,298 |  |  |  | 17,146 |  |  |  | 22,152 |  |  |  | (29,611 | )
Goodwill on business combinations (i) |  |  | 14,714 |  |  |  | 22,303 |  |  |  | (7,589 | ) |  |  | (9,068 | )
Provisions for IFAs’ commissions |  |  | 64,669 |  |  |  | 68,041 |  |  |  | (3,372 | ) |  |  | — |
Revaluations of financial assets at fair value |  |  | (26,370 | ) |  |  | 25,259 |  |  |  | (51,629 | ) |  |  | (2,486 | )
Expected credit losses |  |  | 13,695 |  |  |  | 5,666 |  |  |  | 8,029 |  |  |  | (75 | )
Financial instruments taxed on redemption |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 9,852 |
Profit sharing plan |  |  | 71,309 |  |  |  | 141,136 |  |  |  | (69,828 | ) |  |  | 51,494 |
Net gain on hedge instruments |  |  | 22,706 |  |  |  | (36,384 | ) |  |  | 59,091 |  |  |  | (1,080 | )
Share based plan |  |  | 14,187 |  |  |  | 2,950 |  |  |  | 11,237 |  |  |  | — |
Other provisions |  |  | 47,304 |  |  |  | 33,284 |  |  |  | 14,019 |  |  |  | 776 |
Total |  |  | 261,512 |  |  |  | 279,401 |  |  |  | (17,890 | ) |  |  | 19,802 |
Deferred tax assets |  |  | 261,512 |  |  |  | 284,533 |  |  |  |  |  |  |  |  |
Deferred tax liabilities |  |  | — |  |  |  | (5,132 | ) |  |  |  |  |  |  |  |
(i) | For tax purposes, goodwill is amortized over 5 years on a straight-line basis when the entity acquired is sold or merged into another entity.
|  | Balance Sheet |  |  | Net change in the year |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2017 |
Tax losses carryforwards |  |  | 17,146 |  |  |  | 55,358 |  |  |  | (38,212 | ) |  |  | 37,774 |  |  |  | 17,584 |
Goodwill on business combinations (i) |  |  | 22,303 |  |  |  | 59,993 |  |  |  | (37,690 | ) |  |  | (56,789 | ) |  |  | (51,327 | )
Provisions for IFAs’ commissions |  |  | 68,041 |  |  |  | 31,031 |  |  |  | 37,010 |  |  |  | 4,744 |  |  |  | 26,156 |
Revaluations of financial assets at fair value |  |  | 25,259 |  |  |  | 1,397 |  |  |  | 23,862 |  |  |  | (2,427 | ) |  |  | 4,030 |
Expected credit losses |  |  | 5,666 |  |  |  | 3,079 |  |  |  | 2,587 |  |  |  | (2,345 | ) |  |  | 4,329 |
Financial instruments taxed on redemption |  |  | — |  |  |  | (13,041 | ) |  |  | 13,041 |  |  |  | (6,230 | ) |  |  | (6,811 | )
Profit sharing plan |  |  | 141,136 |  |  |  | — |  |  |  | 141,136 |  |  |  | — |  |  |  | — |
Net gain on hedge instruments |  |  | (36,384 | ) |  |  | (1,441 | ) |  |  | (34,943 | ) |  |  | (51,423 | ) |  |  | 49,382 |
Share-base compensation |  |  | 2,950 |  |  |  | — |  |  |  | 2,950 |  |  |  |  |  |  |  |  |
Other provisions |  |  | 33,284 |  |  |  | 4,024 |  |  |  | 29,260 |  |  |  | (2,572 | ) |  |  | 5,251 |
Total |  |  | 279,401 |  |  |  | 140,400 |  |  |  | 139,001 |  |  |  | (79,268 | ) |  |  | 48,594 |
Deferred tax assets |  |  | 284,533 |  |  |  | 152,425 |  |  |  |  |  |  |  |  |  |  |  |  |
Deferred tax liabilities |  |  | (5,132 | ) |  |  | (12,025 | ) |  |  |  |  |  |  |  |  |  |  |  |
(i) | For tax purposes, goodwill is amortized over 5 years on a straight-line basis when the entity acquired is sold or merged into another entity.
Summary Of Reconciliation Of Changes In Deferred Tax Liability Asset | The changes in the net deferred tax were recognized as follows:
|  | Three months period ended March 31, |
|  | 2020 |  |  | 2019 |
As of January 1 |  |  | 279,401 |  |  |  | 140,400 |
Foreign exchange variations |  |  | 21,055 |  |  |  | (114 | )
Charges to statement of income |  |  | (47,072 | ) |  |  | 18,643 |
Tax relating to components of other comprehensive income |  |  | 8,128 |  |  |  | 1,273 |
As of March 31 |  |  | 261,512 |  |  |  | 160,202 |
| The changes in the net deferred tax were recognized as follows:
|  | 2019 |  |  | 2018 |  |  | 2017 |
At January 1 |  |  | 140,400 |  |  |  | 219,668 |  |  |  | 171,074 |
Foreign exchange variations |  |  | (3,461 | ) |  |  | (9,259 | ) |  |  | (1,155 | )
Business combination (Note 5 (ii)) |  |  | — |  |  |  | — |  |  |  | 3,751 |
Charges to statement of income |  |  | 139,411 |  |  |  | (76,455 | ) |  |  | 45,325 |
Tax relating to components of other comprehensive income |  |  | 3,051 |  |  |  | 6,446 |  |  |  | 673 |
At December 31 |  |  | 279,401 |  |  |  | 140,400 |  |  |  | 219,668 |
Summary Of Income Tax Calculation | The following is a reconciliation of income tax expense to profit (loss) for the year, calculated by applying the combined Brazilian statutory rates at 34% for the period ended March 31:
|  | Three months period ended March 31, |
|  | 2020 |  |  | 2019 |
Income before taxes |  |  | 516,531 |  |  |  | 303,227 |
Combined tax rate in Brazil (i) |  |  | 34 | % |  |  | 34 | %
Tax expense at the combined rate |  |  | 175,620 |  |  |  | 103,097 |
Income (loss) from entities not subject to taxation |  |  | (9,246 | ) |  |  | (48 | )
Effects from entities taxed at different rates |  |  | 14,287 |  |  |  | 6,505 |
Effects from entities taxed at different method (ii) |  |  | (64,678 | ) |  |  | (4,968 | )
Intercompany transactions with different taxation |  |  | (9,156 | ) |  |  | (7,767 | )
Tax incentives |  |  | 605 |  |  |  | — |
Non deductible expenses (non-taxable income), net |  |  | 6,586 |  |  |  | 717 |
Others |  |  | 4,959 |  |  |  | (4,747 | )
Total |  |  | 118,977 |  |  |  | 92,789 |
Effective tax rate |  |  | 23.03 | % |  |  | 30.60 | %
Current |  |  | 71,905 |  |  |  | 111,432 |
Deferred |  |  | 47,072 |  |  |  | (18,643 | )
Total expense |  |  | 118,977 |  |  |  | 92,789 |
(i) | Considering that XP Inc. is domiciled in Cayman and there is no income tax in that jurisdiction, the combined tax rate of 34% demonstrated above is the current rate applied to XP Investimentos S.A. which is the holding company of all operating entities of XP Inc. in Brazil.
(ii) | Certain eligible subsidiaries adopted the PPM tax regime and the effect of the presumed profit of subsidiaries represents the difference between the taxation based on this method and the amount that would be due based on the statutory rate applied to the taxable profit of the subsidiaries. Additionally, some entities and investment funds adopt different taxation regimes according to the applicable rules in their jurisdictions.
|  | 2019 |  |  | 2018 |  |  | 2017 |
Income before taxes |  |  | 1,544,109 |  |  |  | 640,728 |  |  |  | 575,507 |
Combined tax rate in Brazil (a) |  |  | 34,00 | % |  |  | 34,00 | % |  |  | 34,00 | %
Tax expense at the combined rate |  |  | 524,997 |  |  |  | 217,848 |  |  |  | 195,672 |
Income from entities not subject to taxation |  |  | (9,551 | ) |  |  | (3,647 | ) |  |  | (5,101 | )
Effects from entities taxed at different rates |  |  | 25,948 |  |  |  | 16,444 |  |  |  | 9,078 |
Effects from entities taxed at different method (b) |  |  | (24,089 | ) |  |  | (18,183 | ) |  |  | (25,971 | )
Intercompany transactions with different taxation |  |  | (50,138 | ) |  |  | (38,255 | ) |  |  | (30,264 | )
Tax incentives |  |  | (9,772 | ) |  |  | (1,408 | ) |  |  | (265 | )
Non-deductible expenses (non-taxable income) |  |  | 10,888 |  |  |  | (689 | ) |  |  | 175 |
Others |  |  | (13,658 | ) |  |  | 3,288 |  |  |  | 8,642 |
Total |  |  | 454,625 |  |  |  | 175,398 |  |  |  | 151,966 |
Effective tax rate |  |  | 29,44 | % |  |  | 27,20 | % |  |  | 26,38 | %
Current |  |  | 594,037 |  |  |  | 98,943 |  |  |  | 197,291 |
Deferred |  |  | (139,412 | ) |  |  | 76,455 |  |  |  | (45,325 | )
Total expense |  |  | 454,625 |  |  |  | 175,398 |  |  |  | 151,966 |
(a) | Considering that XP Inc. is domiciled in Cayman and there is no income tax in that jurisdiction, the combined tax rate of 34% demonstrated above is the current rate applied to XP Investimentos S.A. which is the holding company of all operanting entities of XP Inc. in Brazil.
(b) | Certain eligible subsidiaries adopted the PPM tax regime and the effect of the presumed profit of subsidiaries represents the difference between the taxation based on this method and the amount that would be due based on the statutory rate applied to the taxable profit of the subsidiaries.
Summary Of Analysis Other Comprehensive Income By Item | The tax (charge)/credit relating to components of other comprehensive income is as follows:
|  | Before tax |  |  | (Charge) / Credit |  |  | After tax |
Foreign exchange variation of investees located abroad |  |  | 1,325 |  |  |  | — |  |  |  | 1,325 |
Gains (losses) on net investment hedge |  |  | (1,277 | ) |  |  | 434 |  |  |  | (843 | )
Changes in the fair value of financial assets at fair value |  |  | (2,021 | ) |  |  | 838 |  |  |  | (1,183 | )
As of March 31, 2019 |  |  | (1,973 | ) |  |  | 1,272 |  |  |  | (701 | )
Foreign exchange variation of investees located abroad |  |  | 56,560 |  |  |  | — |  |  |  | 56,560 |
Gains (losses) on net investment hedge |  |  | (85,600 | ) |  |  | 29,104 |  |  |  | (56,496 | )
Changes in the fair value of financial assets at fair value |  |  | 52,467 |  |  |  | (20,977 | ) |  |  | 31,490 |
As of March 31, 2020 |  |  | 23,427 |  |  |  | 8,127 |  |  |  | 31,554 |
| The tax (charge)/credit relating to components of other comprehensive income is as follows:
|  | Before tax |  |  | (Charge) / Credit |  |  | After tax |
Foreign exchange variation of investees located abroad |  |  | 2,034 |  |  |  | — |  |  |  | 2,034 |
Gains (losses) on net investment hedge |  |  | (3,124 | ) |  |  | 738 |  |  |  | (2,386 | )
Changes in the fair value of financial assets at fair value |  |  | 275 |  |  |  | (65 | ) |  |  | 210 |
As of December 31, 2017 |  |  | (815 | ) |  |  | 673 |  |  |  | (142 | )
Foreign exchange variation of investees located abroad |  |  | 18,645 |  |  |  | — |  |  |  | 18,645 |
Gains (losses) on net investment hedge |  |  | (26,508 | ) |  |  | 9,013 |  |  |  | (17,495 | )
Changes in the fair value of financial assets at fair value |  |  | 6,727 |  |  |  | (2,567 | ) |  |  | 4,160 |
As of December 31, 2018 |  |  | (1,136 | ) |  |  | 6,446 |  |  |  | 5,310 |
Foreign exchange variation of investees located abroad |  |  | 6,823 |  |  |  | — |  |  |  | 6,823 |
Gains (losses) on net investment hedge |  |  | (10,543 | ) |  |  | 3,410 |  |  |  | (7,133 | )
Changes in the fair value of financial assets at fair value |  |  | 1,058 |  |  |  | (360 | ) |  |  | 698 |
As of December 31, 2019 |  |  | (2,662 | ) |  |  | 3,050 |  |  |  | 388 |

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