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10. INCOME AND SOCIAL CONTRIBUTION TAXES (Tables) | 12 Months Ended
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Dec. 31, 2020
Disclosure of income and social contribution taxes [abstract] |
Schedule of income and social contribution taxes recoverable | Current tax assets and current tax liabilities related to income tax and social contribution tax are offset in the statement of financial position subject to criteria established in IAS 12.
|  | 2020 |  | 2019
Income tax |  |  | 698 |  |  |  | 608 |
Social contribution tax |  |  | 247 |  |  |  | 241 |
|  |  | 945 |  |  |  | 849 |
Current |  |  | 598 |  |  |  | 621 |
Non-current |  |  | 347 |  |  |  | 228 |
The balances of income tax and social contribution tax recorded in current liabilities refer mainly to the taxes owed by the subsidiaries which report by the Real Profit method and have opted to make monthly payments based on estimated revenue, and also by the subsidiaries that have opted for the Presumed Profit method, in which payments are made quarterly.
|  | 2020 |  | 2019
Current |  |  |  |
Income tax |  |  | 108 |  |  |  | 99 |
Social contribution tax |  |  | 32 |  |  |  | 35 |
|  |  | 140 |  |  |  | 134 |
Schedule of deferred income and social contribution taxes | The Company has deferred taxed assets and liabilities 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:
|  | 2020 |  | 2019 (Restated) |  | 01/01/2019 (Restated)
Deferred tax assets |  |  |  |  |  |  |  |  |  |  |  |
Tax loss carryforwards |  |  | 401 |  |  |  | 116 |  |  |  | 373 |
Provisions for contingencies |  |  | 538 |  |  |  | 544 |  |  |  | 218 |
Impairment on investments |  |  | 640 |  |  |  | 660 |  |  |  | 882 |
Fair value of derivative financial instruments (PUT SAAG) |  |  | 182 |  |  |  | 164 |  |  |  | 143 |
Post-employment obligations |  |  | 2,168 |  |  |  | 2,090 |  |  |  | 1,477 |
Estimated provision for doubtful receivables |  |  | 256 |  |  |  | 283 |  |  |  | 279 |
Others |  |  | 138 |  |  |  | 171 |  |  |  | 99 |
Total |  |  | 4,323 |  |  |  | 4,028 |  |  |  | 3,471 |
Deferred tax liabilities |  |  |  |  |  |  |  |  |  |  |  |
Funding cost |  |  | (11 | ) |  |  | (16 | ) |  |  | (25 | )
Deemed cost |  |  | (225 | ) |  |  | (232 | ) |  |  | (239 | )
Acquisition costs of equity interests |  |  | (486 | ) |  |  | (503 | ) |  |  | (501 | )
Borrowing costs capitalized |  |  | (169 | ) |  |  | (166 | ) |  |  | (168 | )
Adjustment to expectation of cash flow – Concession assets |  |  | (242 | ) |  |  | (247 | ) |  |  | (252 | )
Revenues arising from transmission contract asset |  |  | (768 | ) |  |  | (624 | ) |  |  | (627 | )
Adjustment to fair value: Swap/Gains |  |  | (1,002 | ) |  |  | (575 | ) |  |  | (277 | )
Others |  |  | (7 | ) |  |  | (5 | ) |  |  | (38 | )
Total |  |  | (2,910 | ) |  |  | (2,368 | ) |  |  | (2,127 | )
Total, net |  |  | 1,413 |  |  |  | 1,660 |  |  |  | 1,344 |
Total assets |  |  | 2,453 |  |  |  | 2,430 |  |  |  | 2,147 |
Total liabilities |  |  | (1,040 | ) |  |  | (770 | ) |  |  | (803 | )
Schedule of changes in deferred income and social contribution taxes | The changes in deferred income tax and social contribution tax were as follows:
|  | 2020 |  |  | 2019 (Restated) |  |  | 01/01/2019 (Restated) |
Balance at January 01 |  |  | 1,660 |  |  |  | 1,344 |  |  |  | 1,072 |
Effects allocated to net profit from continuing operations |  |  | (252 | ) |  |  | (145 | ) |  |  | (27 | )
Effect allocated to other comprehensive income |  |  | 4 |  |  |  | 544 |  |  |  | 239 |
Effects allocated to net profit from discontinuing operations (note 32) |  |  | — |  |  |  | (85 | ) |  |  | — |
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 | )
Others |  |  | 1 |  |  |  | 2 |  |  |  | — |
Balance at December 1 |  |  | 1,413 |  |  |  | 1,660 |  |  |  | 1,344 |
Schedule of estimated balance of deferred tax asset | Based on the estimative from the Company and its subsidiaries, it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilized and the Company estimated that the balance of deferred tax asset as of December 31, 2020 will be recovered, as follows:
|  | Consolidated
| 2021 |  |  |  | 681 |
| 2022 |  |  |  | 708 |
| 2023 |  |  |  | 624 |
| 2024 |  |  |  | 563 |
| 2025 |  |  |  | 563 |
| 2026 to 2028 |  |  |  | 743 |
| 2029 to 2030 |  |  |  | 441 |
|  |  |  |  | 4,323 |
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:
|  | 2020 |  | 2019 (Restated) |  | 2018 ((Restated)
Profit before income tax and social contribution tax |  |  | 3,800 |  |  |  | 4,570 |  |  |  | 2,011 |
Income tax and social contribution tax – nominal expense (34%) |  |  | (1,292 | ) |  |  | (1,554 | ) |  |  | (683 | )
Tax effects applicable to: |  |  |  |  |  |  |  |  |  |  |  |
Gain (loss) in subsidiaries by equity method |  |  | 93 |  |  |  | 8 |  |  |  | (61 | )
Interest on Equity |  |  | 188 |  |  |  | 136 |  |  |  | 71 |
Non-deductible contributions and donations |  |  | (10 | ) |  |  | (13 | ) |  |  | (6 | )
Tax incentives |  |  | 39 |  |  |  | 66 |  |  |  | 29 |
Effects from subsidiaries taxed based on gross revenues |  |  | 97 |  |  |  | 89 |  |  |  | 89 |
Non-deductible penalties |  |  | (25 | ) |  |  | (135 | ) |  |  | (12 | )
Impairment of accounts receivable from related parties |  |  | (13 | ) |  |  | (234 | ) |  |  | — |
Others |  |  | (13 | ) |  |  | 38 |  |  |  | (37 | )
Income tax and social contribution tax – effective expense |  |  | (936 | ) |  |  | (1,599 | ) |  |  | (610 | )
Current tax |  |  | (684 | ) |  |  | (1,454 | ) |  |  | (583 | )
Deferred tax |  |  | (252 | ) |  |  | (145 | ) |  |  | (27 | )
|  |  | (936 | ) |  |  | (1,599 | ) |  |  | (610 | )
Effective rate |  |  | 24.63 | % |  |  | 35.00 | % |  |  | 30.33%

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