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Income and Social Contribution Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income And Social Contribution Taxes

Schedule of Income Tax and Social Contribution Tax Recoverable

The income tax and social contribution balances refer to credits from previous years' tax returns, withholdings made in the current year and prepayments that will be offset against federal taxes payable to be determined at the end of the fiscal year or in subsequent periods.


		2023				2022
Income tax			594				707
Social contribution tax			262				241

			856				948


Current			411				775
Non-current			445				173

Schedule of 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 Income method and have opted to make monthly payments based on estimated revenue, and also by the subsidiaries that have opted for the Presumed Income method, in which payments are made quarterly.


		2023				2022
Current
Income tax			71				198
Social contribution tax			40				42

			111				240

Schedule of 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:


		2023				Profit and loss				Comprehensive income				Other				2022				Profit and loss				Comprehensive income				Other				2021
Deferred tax assets
Tax loss carryforwards			1,219				232				-				-				987				180				-				-				807
Provisions for contingencies			723				121				-				-				602				60				-				-				542
Changes to equity method investees temporary differences, net			57				1				-				-				56				(188	)			-				-				244
Fair value of derivative financial instruments (PUT SAAG)			-				(229	)			-				-				229				13				-				-				216
Provision related to the exclusion of ICMS from the calculation basis of PIS/Pasep and Cofins (1)			88				(510	)			-				-				598				598				-				-				-
Provision for income sharing payments			48				18				-				-				30				30				-				-				-
Post-employment obligations			1,812				80				(119	)							1,852				108				(237	)			-				1,981
Estimated provision for doubtful receivables			326				7				-				-				319				4				-				-				315
Onerous concession			12				-				-				-				12				12				-				-				-
Rights of use (2)			126				9				-				-				117				117				-				-				-
Others			13				(10	)			-				6				17				(133	)			-				-				150

Total			4,424				(281	)			(119	)			6				4,819				801				(237	)			-				4,255


Deferred tax liabilities
Deemed cost			(155	)			1				-				-				(156	)			63				-				-				(219	)
Acquisition costs of equity interests			(439	)			17				-				-				(456	)			10				-				-				(466	)
Borrowing costs capitalized			(182	)			(12	)			-				-				(170	)			(5	)			-				-				(165	)
Adjustment to expectation of cash flow – Concession assets			(334	)			(71	)			-				-				(263	)			(18	)			-				-				(245	)
Revenues arising from transmission contract asset			(931	)			9				-				-				(940	)			(45	)			-				-				(895	)
Adjustment to fair value: Swap/Loss			(126	)			84				-				-				(210	)			202				-				-				(412	)
Reimbursement of costs – GSF			(229	)			45				-				-				(274	)			45				-				-				(319	)
Lease liabilities (2)			(127	)			(19	)			-				-				(108	)			(108	)			-				-				-
Others			32				85				-				-				(54	)			(20	)			-				(3	)			(31	)

Total			(2,491	)			139				-				-				(2,631	)			124				-				(3	)			(2,752	)

Total, net			1,933				(142	)			(119	)			6				2,188				925				(237	)			(3	)			1,503


Total assets			3,045																3,120																2,465
Total liabilities			(1,112	)															(932	)															(962	)

(1) In 2022, a provision was recorded as a result of Law 14385/22, which determined the fully destination, for the benefit of consumers, of the amounts subject to repeal of debt by the distributors, related to the exclusion of ICMS from the PIS/Pasep and Cofins calculation basis. The amount refers to the period from the 11th year onwards, counted retroactively from the date of the final and unappealable decision in the lawsuit, net of the portion included in the 2022 and 2023 Annual Tariff Adjustments.

(2) The separate presentation of these deferred tax assets and liabilities results from the change in IAS 12. There was no impact on the Company's results, the effect of the change being related only to disclosure. For comparability purposes, the change was reflected in the 2022 financial year based on the same criteria. For further details, see note 3.8.

Schedule of Changes in Deferred Income Tax and Social Contribution Tax

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



Balance at December 31, 2020			1,413

Effects allocated to net profit			210
Effect allocated to other comprehensive income			(102	)
Deferred taxes received in corporate reorganization			(16	)
Others			(2	)

Balance at December 31, 2021			1,503

Effects allocated to net profit			924
Effect allocated to other comprehensive income			(237	)
Deferred taxes received in corporate reorganization			-
Others			(2	)

Balance at December 31, 2022			2,188

Effects allocated to net profit			(141	)
Effect allocated to other comprehensive income			(119	)
Others			5

Balance at December 31, 2023			1,933

Schedule of 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:


		2023				2022
Profit before income tax and social contribution tax			6,851				4,121
Income tax and social contribution tax – nominal expense (34%)			(2,329	)			(1,401	)
Tax effects applicable to:
Gain in subsidiaries by equity method			93				182
Tax incentives			89				62
Effects from subsidiaries taxed based on gross revenues			92				97
Non-deductible penalties			(95	)			(45	)
Interest on Equity			950				722
Estimated losses on doubtful accounts receivable from related parties			-				234
Realization of goodwill (note 32)			-				108
Monetary update on tax credits (1)			101				-
Others			15				15

Income tax and Social Contribution – effective gain (expense)			(1,084	)			(26	)

Current tax			(943	)			(950	)
Deferred tax			(141	)			924

			(1,084	)			(26	)

Effective rate			15.82	%			0.63	%

(1) Refers to the monetary updates on PIS/Pasep and Cofins on ICMS including differences beteween ICMS Invoiced x Collected. In 2022, the balance of this update was taxed, but with the STF's favorable decision, the balance was excluded in the 2023 calculation.