XML 89 R53.htm IDEA: XBRL DOCUMENT v3.22.1
INCOME AND SOCIAL CONTRIBUTION TAXES (Tables)
 12 Months Ended
Dec. 31, 2021
Income And Social Contribution Taxes  
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. 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.

 

   2021  2020
Income tax   763    698 
Social contribution tax   251    247 
 Income and social contribution tax credits   1,014    945 
           
Current   699    598 
Non-current   315    347 
Schedule of income and social contribution taxes 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.

 

   2021  2020
Current      
Income tax   147    108 
Social contribution tax   43    32 
Total

 

   190    140 
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:

 

 

   2021  2020  2019
Deferred tax assets               
Tax loss carryforwards   807    401    116 
Provisions for contingencies   542    538    544 
Impairment on investments   244    640    660 
Fair value of derivative financial instruments (PUT SAAG)   216    182    164 
Post-employment obligations   1,981    2,168    2,090 
Estimated provision for doubtful receivables   315    256    283 
Others   150    138    171 
Total   4,255    4,323    4,028 
                
Deferred tax liabilities               
Deemed cost   (219)   (225)   (232)
Acquisition costs of equity interests   (466)   (486)   (503)
Borrowing costs capitalized   (165)   (169)   (166)
Adjustment to expectation of cash flow – Concession assets   (245)   (242)   (247)
Revenues arising from transmission contract asset   (895)   (768)   (624)
Adjustment to fair value: Swap/Gains   (412)   (1,002)   (575)
Updating on escrow deposits   (7)   (6)   (5)
Reimbursement of costs – GSF   (319)   —      —   
Others   (24)   (12)   (16)
Total   (2,752)   (2,910)   (2,368)
Total, net   1,503    1,413    1,660 
                
Total assets   2,465    2,453    2,430 
Total liabilities   (962)   (1,040)   (770)

 

 
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, 2018   1,344 
Effect allocated to other comprehensive income   544 
Effects allocated to net profit from continuing operations   (145)
Effects allocated to net profit from discontinuing operations (note 34)   (85)
Others   2 
Balance at December 31, 2019   1,660 
Effects allocated to net profit from continuing operations   (252)
Effect allocated to other comprehensive income   4 
Others   1 
Balance at December 31, 2020   1,413 
Effect allocated to other comprehensive income   (102)
Effects allocated to net profit from continuing operations   210 
Deferred taxes arising from shareholding reorganization   (16)
Others   (2)
Balance at December 31, 2021   1,503 

 
Schedule of estimated balance of deferred tax asset

Based on 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, 2021 will be recovered, as follows:

 

   Consolidated
 2022    717 
 2023    583 
 2024    662 
 2025    507 
 2026    481 
 2027 to 2029    845 
 2030 to 2031    460 
      4,255 
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:

 

   2021  2020
Profit before income tax and social contribution tax   4,699    3,800 
Income tax and social contribution tax — nominal expense (34%)   (1,597)   (1,292)
Tax effects applicable to:          
Gain in subsidiaries by equity method   6    93 
Interest on Equity   325    188 
Tax incentives   63    39 
Effects from subsidiaries taxed based on gross revenues   146    97 
Non-deductible penalties   (23)   (25)
Impairment of accounts receivable from related parties   —    (13)
Income arising from the Light sale   154    — 
Others   (20)   (23)
Income tax and social contribution tax — effective expense   (946)   (936)
           
Current tax   (1,156)   (684)
Deferred tax   210    (252)
    (946)   (936)
Effective rate   20.12%   24.62%