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11. INCOME AND SOCIAL CONTRIBUTION TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure of income and social contribution taxes [abstract]

Schedule of income and social contribution taxes recoverable

The balances of income tax and social contribution tax refer to tax credits in the corporate income tax returns of previous years and to advance payments which will be offset against federal taxes eventually payable.

		2019				2018
Income tax		608				253
Social contribution tax		241				140
		849				393
Current		621				387
Non-current		228				6

		2019				2018
Current
Income tax		99				83
Social contribution tax		35				29
		134				112

Schedule of deferred income and social contribution taxes

The Company has deferred taxed assets from unused tax loss carryforwards, negative base for the social contribution tax, and deductible temporary differences, at the statutory rates applicable to each legal entity in Brazil of 25% (for Income tax) and 9% (for the social contribution tax), as follows:

		2019				2018
Deferred tax assets
Tax loss carryforwards		116				373
Provisions for contingencies		544				218
Impairment on investments		660				882
Fair value of derivative instruments (PUT SAAG )		164				143
Operating provisions		66				39
Provisions for profit sharing		72				25
Post-employment obligations		2,090				1,477
Estimated provision for doubtful receivables		283				279
Onerous concession		8				8
Others		25				27
Total		4,028				3,471
Deferred tax liabilities
Funding cost		(16	)			(25	)
Deemed cost		(232	)			(239	)
Acquisition costs of equity interests		(503	)			(501	)
Borrowing costs capitalized		(166	)			(168	)
Taxes on revenues not redeemed – Presumed Profit accounting method		(1	)			(5	)
Adjustment to expectation of cash flow – Concession assets		(761	)			(804	)
Adjustment to fair value: Swap/Gains		(575	)			(277	)
Others		(5	)			(33	)
Total		(2,259	)			(2,052	)
Total, net		1,769				1,419
Total assets		2,430				2,147
Total liabilities		(661	)			(728	)

Schedule of changes in deferred income and social contribution taxes

The changes in deferred income tax and social contribution tax were as follows:

		Consolidated
Balance at December 31, 2016		1,215
Effects allocated to net profit from continuing operations		(198	)
Effect allocated to other comprehensive income		133
Effects allocated to equity
Variations in deferred tax assets and liabilities		(14	)
Balance at December 31, 2017		1,136
Effects allocated to net profit from continuing operations		(16	)
Effect allocated to other comprehensive income		239
Effects allocated to Equity
First-time adoption of IFRS 9 – effects allocated to equity		51
Reversal of deemed cost		18
Transfer to assets held for sale		(3	)
Variations in deferred tax assets and liabilities		(3	)
Deferred taxes arising from business combination		(3	)
Balance at December 31, 2018		1,419
Effect allocated to other comprehensive income		544
Effects allocated to net profit from continuing operations		(111	)
Effects allocated to net profit from discontinuing operations (note 34)		(85	)
Others		2
Balance at December 31, 2019		1,769

Schedule of estimated balance of deferred tax asset

The Company estimated that the balance of deferred tax asset as of December 31, 2019 will be recovered, as follows:

		Consolidated
2020		659
2021		571
2022		571
2023		572
2024		571
2025 to 2027		659
2028 to 2029		425
		4,028

Schedule of reconciliation of statutory on income and social contribution Ttxes

This table reconciles the statutory income tax (rate 25%) and social contribution tax (rate 9%) with the current income tax expense in the Statement of income:


		2019				2018				2017
Profit before income tax and social contribution tax		4,469				1,978				1,646
Income tax and social contribution tax – nominal expense (34%)		(1,520	)			(672	)			(560	)
Tax effects applicable to:
Gain (loss) in subsidiaries by equity method		8				(61	)			(129	)
Interest on Equity		136				71				–
Gain on dilution of an equity interest		–				–				8
Non-deductible contributions and donations		(13	)			(6	)			(6	)
Tax incentives		66				29				11
Tax credits not recognized		–				(1	)			–
Effects from subsidiaries taxed based on gross revenues		89				89				81
Non-deductible penalties		(135	)			(12	)			(14	)
Impairment of accounts receivable from related parties		(234	)
Excess reactive power and demand		–				–				(2	)
Others		38				(36	)			(33	)
Income tax and social contribution tax – effective expense		(1,565	)			(599	)			(644	)
Current tax		(1,454	)			(583	)			(446	)
Deferred tax		(111	)			(16	)			(198	)
		(1,565	)			(599	)			(644	)
Effective rate		35.03	%			30.30	%			39.13	%