The charge for current taxation is calculated at the following income tax rates on the taxable profit for the year for the various countries in which the Group operates:


Malta		5	%		(a)		Israel			23		%
Cayman		0	%				Mexico			30		%
United Kingdom		0	%		(b)		India			25		%
Brazil		34	%		(c)		Chile	27% and 10%					(e)
Colombia		31	%				Peru			30		%
Argentina	25% and 35%			(d)		Morocco			31		%		(f)
Ecuador		2	%				Egypt			23		%
Uruguay		25	%				South Africa			28		%
Panamá		25	%				Nigeria			0		%
Paraguay		10	%				Indonesia			22		%
Dominican Republic		27	%

(a) With effect from year of assessment 2020, Dlocal Group Limited made an election in order for itself and its ‘Qualifying subsidiary’ to form a fiscal unit. The total chargeable income of the fiscal unit, resulting in a flat modified corporate tax rate of 5% being applicable directly to the income allocated to the principal taxpayer.

(b) The UK partnership are tax transparent. No charge for current taxation has been made in the other subsidiaries.

(c) Composed of IRPJ (Imposto de Renda de Pessoa Juridica) at the rate of 25% and CSLL (Contribuiyao Social sobre o Lucro Liquido) at the rate of 9%.

(d) Progressive rates: 25% and 35% depending on the tax result.

(e) General tax rate: 27%. Specific rate applicable to Propyme 10%.

(f) Progressive rates: 10%, 20% and 30% depending on the tax result.

The income tax charge recognized in profit and losses is the following:


Current Income Tax	2021			2020			2019
Current Income Tax on profits for the year		(6,940	)		(3,172	)		(2,237	)
Total Current Income Tax expense		(6,940	)		(3,172	)		(2,237	)

Deferred income tax	2021			2020			2019
Increase in deferred income tax assets		(83	)		200			16
Increase in deferred income tax liabilities		(624	)		(259	)		—
Total Deferred income tax (expense) / benefit		(707	)		(59	)		16
Income Tax expense		(7,647	)		(3,231	)		(2,221	)

Deferred Tax Assets

The balance comprises temporary differences attributable to:


	2021		2020		2019
Tax Losses		31		98		—
Accrued Liabilities		318		79		7
Exchange differences		—		14		9
Other		24		25		—
Total		373		216		16

Movements:


	Tax losses			Accrued liabilities		Exchange differences			Other		Total
At January 1, 2021		98			79		14			25		216
(Charged) / credited to profit & loss		(67	)		237		(14	)		1		157
At December 31, 2021		31			316		—			26		373

	Tax losses			Accrued liabilities		Exchange differences			Other		Total
At January 1, 2020		—			12		4			—		16
(Charged) / credited to profit & loss		98			67		10			25		200
At December 31, 2020		98			79		14			25		216

Deferred Tax Liabilities

The balance comprises temporary differences attributable to:


	2021		2020		2019
Accrued receivables		900		259		—
Other		223		—
Total		1,123		259		—

Movements:


	Accrued Liabilities		Other		Total
At January 1, 2021		259		—		259
(charged) / credited to profit & loss		641		223		864
At December 31, 2021		900		223		1,123

At January 1, 2020		—		—		—
(charged) / credited to profit & loss		259		—		259
At December 31, 2020		259		—		259

As of December 31, 2021 and 2020, no deferred tax liability has been recognized on investments in subsidiaries. The Company has concluded it has the ability and intention to control the timing of any distribution from its subsidiaries and it is probable that will be no reversal in the foreseeable future in a way that would result in a charge to taxable profit

The effective Income Tax rate of dLocal for fiscal year 2021 was 8.9% (10.3% and 12.5% in the years ended December 31, 2020 and 2019, respectively). For fiscal year 2021, dLocal applied for fiscal consolidation in Malta resulting in a domestic rate of 5% (fiscal consolidation was not applied for 2020 and 2019, resulting in a domestic rate of 35% with a 30% of tax refund). The reconciliation between the effective Income Tax rate and the statutory rate in Malta of 5% for fiscal year 2021, and 35% for fiscal years 2020 and 2019 is as follows:


	2021			2020			2019
Profit before Income Tax		85,500			31,418			17,823
Tax at the domestic rates applicable to profit before income tax in the respective jurisdiction		(4,275	)		(4,718	)		(1,246	)
Permanent differences:
Tax effect of non-taxable income		3,369			8,489			2,929
Tax effect on income tax refund on dividends		—			(2,197	)		(1,747	)
Effect from entities taxes in different rates		(3,127	)		(4,254	)		(2,321	)
Other permanent differences		(3,614	)		(551	)		164
Total Income Tax Expense		(7,647	)		(3,231	)		(2,221	)

(1) Other permanent differences for 2021 comprises taxable income from subsidiaries not included in the Profit before Income Tax for an amount of USD 1,357, non-allowable taxes for USD 921, non-allowable expenses for USD 678 and other differences for USD 658.