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10. INCOME AND SOCIAL CONTRIBUTION TAXES | 12 Months Ended
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Dec. 31, 2020
Disclosure of income and social contribution taxes [abstract] |
INCOME AND SOCIAL CONTRIBUTION TAXES |
10. | INCOME AND SOCIAL CONTRIBUTION TAXES
a) Income tax and social contribution tax 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. 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 posted in non-current assets arise from advanced payments required by tax law and withholding taxes, which the expectation of offsetting is greater than 12 months.
b) | Income tax and social contribution tax payable
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 |
c) | Deferred income tax and social contribution tax
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 | )
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 |
The estimated taxable profits forecast, on which the realization of deferred tax asset are based, are determined by the annual budget and the long-term budget, both reviewed periodically, and by the historical profit. However, the taxable profit may be either higher or lower than the evaluation used by the management when the amount of the deferred tax recognized was determined. Based on the Company and its subsidiaries’ estimates, it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilized. 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 |
d) | Reconciliation of income tax and social contribution tax effective rate
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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- Definition Disclosure of income and social contribution taxes. + References No definition available. + Details
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- Definition The disclosure of income and social contribution taxes. + References No definition available. + Details
Name: | cig_DisclosureOfIncomeAndSocialContributionTaxesExplanatory
Namespace Prefix: | cig_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration