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Income tax | 12 Months Ended
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Dec. 31, 2025
Major components of tax expense (income) [abstract] |
Income tax | 23 Income tax
(a) Deferred income tax Deferred tax assets (DTA) and deferred tax liabilities (DTL) are comprised of the main following components:
| Balance sheet |  | Net change in the year
| 2025 |  | 2024 |  | 2025 |  | 2024 |  | 2023
Tax losses carryforwards | 1,137,635 |  |  | 1,051,966 |  |  | 85,669 |  |  | 309,721 |  |  | 167,125 |
Goodwill on business combinations (i) | 65,886 |  |  | 51,319 |  |  | 14,567 |  |  | 15,496 |  |  | 29,447 |
Provisions for IFAs’ commissions | 86,854 |  |  | 84,756 |  |  | 2,098 |  |  | (5,319) |  |  | 18,089 |
Revaluations of financial assets at fair value | 277,750 |  |  | 294,986 |  |  | (17,236) |  |  | 461,267 |  |  | 48,175 |
Expected credit losses (ii) | 373,261 |  |  | 334,006 |  |  | 39,255 |  |  | (1,705) |  |  | 277,503 |
Profit sharing plan | 329,517 |  |  | 298,539 |  |  | 30,978 |  |  | 19,556 |  |  | 9,034 |
Net gain/(loss) on hedge instruments | (41,076) |  |  | (31,854) |  |  | (9,222) |  |  | (9,150) |  |  | (11,535) |
Share-based compensation | 375,420 |  |  | 558,744 |  |  | (183,324) |  |  | (68,986) |  |  | 61,009 |
Other provisions | 276,179 |  |  | (19,817) |  |  | 295,996 |  |  | (116,006) |  |  | (81,915) |
Total | 2,881,426 |  |  | 2,622,645 |  |  | 258,781 |  |  | 604,874 |  |  | 516,932 |
Deferred tax assets | 3,370,919 |  |  | 2,887,935 |  |  |  |  |  |  |
Deferred tax liabilities | (489,493) |  |  | (265,290) |  |  |  |  |  |  |
(i)For Brazilian tax purposes, goodwill amortization expenses are deductible from the corporate income taxes calculation basis (i) over at least five years, on a straight-line basis, when the acquired entity is merged into the acquiring company or (ii) at once, as cost of acquisition, when the company is sold. (ii)Include expected credit loss on accounts receivable, loan operations and other financial assets. The changes in the net deferred tax were recognized as follows:
| 2025 |  | 2024 |  | 2023
As of January, 1 | 2,622,645 |  |  | 2,017,771 |  |  | 1,500,839 |
Foreign exchange variations | (5,835) |  |  | (22,335) |  |  | (46,714) |
Business combination | — |  |  | — |  |  | 330,247 |
Charges to statement of income | 563,729 |  |  | (39,084) |  |  | 549,702 |
Tax relating to components of other comprehensive income | (296,818) |  |  | 728,007 |  |  | (356,163) |
Other deferred taxes | (2,295) |  |  | (61,714) |  |  | 39,860 |
As of December, 31 | 2,881,426 |  |  | 2,622,645 |  |  | 2,017,771 |
(b) Income tax expense reconciliation The tax on the Group's pre-tax profit differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits of the consolidated entities. The following is a reconciliation of income tax expense to profit (loss) for the year, calculated by applying the combined Brazilian statutory rates of 34% for the year ended December 31:
| 2025 |  | 2024 |  | 2023
Income before taxes | 5,448,556 |  |  | 4,985,967 |  |  | 3,936,348 |
Combined tax rate in Brazil (i) | 34.00 | % |  | 34.00 | % |  | 34.00 | %
Tax expense at the combined rate | 1,852,509 |  |  | 1,695,229 |  |  | 1,338,359 |
Effects from entities taxed at different rates | (13,009) |  |  | 175,868 |  |  | (43,572) |
Effects from entities taxed at different taxation regimes (ii) | (1,195,792) |  |  | (1,051,135) |  |  | (1,174,605) |
Intercompany transactions with different taxation regimes | (263,044) |  |  | (301,833) |  |  | (68,673) |
Tax incentives and related donation programs | (16,463) |  |  | (13,503) |  |  | (17,835) |
Non-deductible expenses (non-taxable income) | (84,938) |  |  | (33,499) |  |  | (17,459) |
Others | — |  |  | — |  |  | 20,742 |
Total | 279,263 |  |  | 471,127 |  |  | 36,957 |
Current | 842,992 |  |  | 432,043 |  |  | 586,659 |
Deferred | (563,729) |  |  | 39,084 |  |  | (549,702) |
Total expense / (credit) | 279,263 |  |  | 471,127 |  |  | 36,957 |
(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 Finance Holding 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. Other comprehensive income 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 | (41,160) |  |  | — |  |  | (41,160) |
Gains (losses) on net investment hedge | 41,477 |  |  | (6,874) |  |  | 34,603 |
Changes in the fair value of financial assets at fair value | 905,670 |  |  | (349,289) |  |  | 556,381 |
As of December 31, 2023 | 905,987 |  |  | (356,163) |  |  | 549,824 |
Foreign exchange variation of investees located abroad | 147,671 |  |  | — |  |  | 147,671 |
Gains (losses) on net investment hedge | (136,598) |  |  | — |  |  | (136,598) |
Changes in the fair value of financial assets at fair value | (1,894,661) |  |  | 728,007 |  |  | (1,166,654) |
As of December 31, 2024 | (1,883,588) |  |  | 728,007 |  |  | (1,155,581) |
Foreign exchange variation of investees located abroad | (99,474) |  |  | — |  |  | (99,474) |
Gains (losses) on net investment hedge | 70,908 |  |  | — |  |  | 70,908 |
Changes in the fair value of financial assets at fair value | 682,244 |  |  | (296,818) |  |  | 385,426 |
Changes in discount rates (IFRS 17) | (12,954) |  |  | — |  |  | (12,954) |
As of December 31, 2025 | 640,724 |  |  | (296,818) |  |  | 343,906 |

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