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Income Taxes

12 Months Ended

Dec. 31, 2023

Income Taxes [Abstract]

Income taxes

16.

Income taxes

The Company is subject to Income Tax (ISR).

The analysis of the income tax charged to the results of 2023, 2022 and 2021 is as follows:

	2023			2022			2021

Income tax of the year for Mexican companies	$	1,291,378		$	2,549,851		$	2,564,312
Income tax year for foreign companies		403,436			599,940			1,253,895
Deferred tax for Mexican companies		(40,943	)		(119,999	)		(96,453	)
Deferred tax for foreign companies		86,127			269,730			668,015
	$	1,739,998		$	3,299,522		$	4,389,769

During 2023, 2022 and 2021, 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:

	2023			2022			2021

Expected benefit, expense	$	1,804,233		$	3,348,174		$	4,150,690
Increase (decrease) as a result of:
Inflation effect, net		(581,549	)		(524,640	)		(577,234	)
Impact of the nominal rate differences between the USA and Mexico		112,377			29,996			66,343
Benefit from utilization of tax loss carry-forwards and others (1)		342,202			80,166			(12,086	)
Others, net (includes permanent items) Income tax expense		62,735			365,826			762,056
Income tax expense	$	1,739,998		$	3,299,522		$	4,389,769
Effective tax rate		28.93	%		29.56	%		31.73	%

(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 2023, 2022 and 2021, less the effect of tax losses incurred by some subsidiaries for which no deferred tax asset was recorded.

The Company has tax losses in some Mexican subsidiaries which, according to the ISR law in Mexico, can be amortized to reduce taxable income generated over the following ten years. Tax losses can be updated following certain procedures established in the law.

As of December 31, 2023, 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

	2014		2024		4,307
	2015		2025		7,755
	2016		2026		428,832
	2017		2027		252,162
	2018		2028		15,464
	2019		2029		1,044,870
	2020		2030		521,031
	2021		2031		854,241
	2022		2032		1,059,003
	2023		2033		708,322
				$	4,895,987

As of December 31, 2023, Republic has USD$ 316.1 million of tax loss carryforwards for federal tax purposes, of which USD$ 196.7 million expires between 2033 and 2038; USD$ 119.4 million of tax loss carryforwards expire indefinitely. USD$ 280.1 million of losses for state and municipal purposes that expire between 2022 and 2040 approximately. USD$ 6.6 million of tax losses in the company located in Canada, which expire between 2032 and 2040.

Below is a summary of the effects of the main temporary items that make up the deferred income tax liability included in the consolidated statement of financial position:

	December 31,
	2023			2022

Deferred tax assets:
Allowance for doubtful accounts	$	(68,211	)	$	(67,930	)
Advances from customers		208,805			464,268

Total deferred tax assets		140,594			396,338

Deferred tax liabilities:

Property, plant and equipment		3,442,332			4,209,513
Intangible assets from Grupo San		399,050			381,282
Provisions		77,604			17,199
Prepaid expenses		45,294			11,493

Total deferred tax liabilities		3,964,280			4,619,487

Deferred tax liabilities, net	$	3,823,686		$	4,223,149