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10. INCOME AND SOCIAL CONTRIBUTION TAXES (Tables)

12 Months Ended

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%