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Income taxes (Tables)
 12 Months Ended
Dec. 31, 2020
Major components of tax expense (income) [abstract]  
Schedule of Income Tax Charged (Credited)

The analysis of the income tax charged to the results of 2020, 2019 and 2018 is as follows:

 

  2 0 2 0   2 0 1 9   2 0 1 8
                 
Income tax of the year for Mexican companies $ 1,460,057   $ 3,177,506   $ 67,745
Income tax year for foreign companies     370,860     301,263     444,104
Deferred tax for Mexican companies   (94,604)     12,978     408,141
Deferred tax for foreign companies      341,531           (215,473)     (167,528)
  $ 2,077,844   $ 3,276,274   $ 752,462
Schedule of Income Tax Expense (Benefit)

During 2020 and 2019, the income tax expense (benefit) attributable to income was different from the one that will result for applying 30% (tax rate in Mexico) before these provisions, as a result of the items shown below:

  2 0 2 0   2 0 1 9   2 0 1 8
                 
Expected benefit, expense $       1,462,776   $ 490,925   $ 1,308,828
Increase (decrease) as a result of:                
Inflation effect, net   (139,134)     (417,960)     (114,419)
Impact of the nominal rate differences between the USA and Mexico   11,075     (23,368)     (35,914)
Benefit from utilization of tax loss carry-forwards and others (1)   16,173     (987,135)     (1,238,444)
Others, net (includes permanent items)    172,519     1,890,150     832,411
Income tax expense (2) $ 1,523,409   $ 952,612   $ 752,462
Effective tax rate   31.24%     58.21%     17.92%
             
(1)This amount corresponds to the income tax benefit obtained by those companies that used tax loss carry-forwards in the years presented that were generated previously to 2020, 2019 and 2018, less the effect of tax losses incurred by some subsidiaries for which no deferred tax asset was recorded.

 

(2)For the purpose of determining the effective tax rate, the payments corresponding to taxes from previous years and expenses that were paid by various group companies derived from repair agreements during 2020 and 2019 fiscal years were not considered within the income tax expense.
Schedule of Tax Losses Pending of Amortize

As of December 31, 2020, Grupo Simec, S.A.B. de C.V. and certain of its Mexican subsidiaries have updated tax losses pending of amortize as follows:

 

Origin

Date

  

Expiration

Date

   Tax losses  available  
2011   2021     7,832,672 (1)
2012   2022     13  
2013   2023     4,944  
2014   2024     14,231  
2015   2025     8,395  
2016   2026     356,102  
2017   2027     348,058  
2018   2028     100,674  
2019   2029     1,119,822  
2020   2030     846,324  
        $ 10,631,235  

 

 

 

 

(1)This amount includes $ 7,832,647 corresponding to a tax loss from the sale of shares which, according to the Income Tax Law, can only be applied against taxable profits on the sale of shares generated in the future.
Schedule of Deferred Income Tax Liability

Below is a summary of the effects of the main temporary differences comprising the deferred income tax liability included in the consolidated statements of financial position.

 

  December 31,
  2 0 2 0   2 0 1 9
           

Deferred tax assets:

 

          
    Allowance for doubtful accounts $ (61,536)   $ (50,476)
    Advances from customers   283,846     182,635
           
Deferred tax assets   222,310     132,159
           
Deferred tax liabilities:          
           
    Property, plant and equipment   3,321,941     3,159,719
    Intangible assets from Grupo San   329,600     318,768
    Provisions   202,407     30,641
    Prepaid expenses   6,883     33,137
           
Total deferred liabilities   3,860,831     3,542,265
           
Deferred tax liabilities, net $ 3,638,521   $ 3,410,106