DEFERRED INCOME TAX (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of changes in deferred income tax

Changes in deferred income tax are as follows:



	As of December 31,
	2021	2020

At the beginning of the year	(187,782)	(239,740)


Translation differences	(69)	(36)
Effect of changes in tax law (note 10)	(9,117)	—

Credits directly to other comprehensive income	(14,158)	12,100
Deferred tax credit (note 10)	185,655	39,894

At the end of the year	(25,471)	(187,782)

Changes in deferred tax assets and liabilities

The changes in deferred tax assets and liabilities (prior to offsetting the balances within the same tax jurisdiction) during the year are as follows:


Deferred tax liabilities	PP&E	Inventories	Intangible assets	Other	Total at December 31, 2021

At the beginning of the year	(426,140)	(30,187)	(20,710)	(2,021)	(479,058)




Income statement credit (charge)	72,720	79,624	(5,613)	(8,938)	137,793

At the end of the year	(353,420)	49,437	(26,323)	(10,959)	(341,265)


Deferred tax assets	Provisions	Trade receivables	Tax losses (1)	Other (2)	Total at December 31, 2021

At the beginning of the year	52,342	9,186	31,084	198,664	291,276

Translation differences	—	—	—	(69)	(69)

Credits directly to other comprehensive income	—	—	—	(14,158)	(14,158)
Effect of changes in tax law	—	—	—	(9,117)	(9,117)
Income statement credit (charge)	29,797	25,958	(27,506)	19,613	47,862

At the end of the year	82,139	35,144	3,578	194,933	315,794

(1) As of December 31, 2021, the recognized deferred tax assets on tax losses amount to $3,578 and there are net unrecognized deferred tax assets of $0.1 billion and unrecognized tax losses amounting to $0.8 billion. These two last effects are connected to the acquisition of Ternium Brasil Ltda.

(2) It corresponds mainly to the deferred tax assets related to post-employment benefits and asset retirement obligations.


Deferred tax liabilities	PP&E	Inventories	Intangible assets	Other	Total at December 31, 2020

At the beginning of the year	(437,376)	(63,460)	(17,109)	(1,189)	(519,134)

Translation differences	46	—	—	—	46




Income statement credit (charge)	11,190	33,273	(3,601)	(832)	40,030

At the end of the year	(426,140)	(30,187)	(20,710)	(2,021)	(479,058)


Deferred tax assets	Provisions	Trade receivables	Tax losses (3)	Other	Total at December 31, 2020

At the beginning of the year	45,654	10,200	42,766	180,774	279,394

Translation differences	—	—	—	(82)	(82)

Credits directly to other comprehensive income	—	—	—	12,100	12,100

Income statement credit (charge)	6,688	(1,014)	(11,682)	5,872	(136)

At the end of the year	52,342	9,186	31,084	198,664	291,276

(3) As of December 31, 2020, the recognized deferred tax assets on tax losses amount to $31,084 and there are net unrecognized deferred tax assets of $0.2 billion and unrecognized tax losses amounting to $1.0 billion. These two last effects are connected to the acquisition of Ternium Brasil Ltda.