INCOME TAX AND DEFERRED TAX (Tables)

12 Months Ended

Dec. 31, 2018

INCOME TAX AND DEFERRED TAX [Abstract]

The reconciliation between the tax computed for tax purposes and the income tax expense charged to the statement of comprehensive income in the years ended December 31, 2018, 2017 and 2016 is as follows:

	2018			2017			2016
Current income tax		(3,198,356	)		(2,442,608	)		(931,568	)
Special revaluation tax		(1,048,000	)		-			-
Deferred income tax		4,233,185			2,495,685			(170,709	)
Total income tax		(13,171	)		53,077			(1,102,277	)

Net Deferred Tax Assets and Liabilities

The analysis of the net deferred tax assets and liabilities is as follows:

	2018			2017
Deferred tax assets:
Deferred tax assets to be recovered after more than 12 months		725,558			619,101
Deferred tax assets to be recovered after less than 12 months		103,566			112,834
Deferred tax liabilities:
Deferred tax liabilities to be recovered after more than 12 months		(2,949,051	)		(7,164,720	)
Deferred tax liabilities to be recovered after less than 12 months		(103,638	)		(23,965	)
Deferred tax liabilities, net		(2,223,565	)		(6,456,750	)

Components of Net Deferred Tax Assets and Liabilities

The components of the net deferred tax assets and liabilities as of December 31, 2018, 2017 and 2016 are the following:

Deferred tax assets	Allowance for doubtful accounts			Tax credits discounted value loss			Account receivables discounted value			Provisions for legal claims and other provisions			Financial lease			Contract liabilities		Total
As of December 31, 2016		12,294			2,815			70			180,950			518,070			281,232		995,431
Charge in results		(12,294	)		(2,815	)		(70	)		(68,116	)		(182,606	)		2,405		(263,496	)
As of December 31, 2017		-			-			-			112,834			335,464			283,637		731,935
Charge in results		-			387			2,273			(11,928	)		72,110			34,347		97,189
As of December 31, 2018		-			387			2,273			100,906			407,574			317,984		829,124

Deferred tax liabilities	Deferred sales			Loans			Property, plant and equipment			Cash and cash equivalents			Inventaries			Total
As of December 31, 2016		85			(8,756	)		(9,915,672	)		(14,373	)		(9,150	)		(9,947,866	)
Charge in results		(85	)		5,094			2,754,614			(2,090	)		1,648			2,759,181
As of December 31, 2017		-			(3,662	)		(7,161,058	)		(16,463	)		(7,502	)		(7,188,685	)
Charge in results		2,839			(27,419	)		4,243,088			(78,451	)		(4,061	)		4,135,996
As of December 31, 2018		2,839			(31,081	)		(2,917,970	)		(94,914	)		(11,563	)		(3,052,689	)

Effective Income Tax Rate Reconciliation

Income tax expense computed at the statutory tax rate on pre-tax income differs from the income tax expense for the years ended December 31, 2018, 2017 and 2016 as follows:

	2018			2017			2016
Pre tax income		11,429,007			5,698,116			2,208,572
Statutory income tax rate		30	%		35	%		35	%
Pre tax income at statutory income tax rate		(3,428,702	)		(1,994,341	)		(773,000	)
Tax effects due to:
- Inflation effect ⁽¹⁾		4,432,884			(187,006	)		(321,584	)
- Special revaluation tax		(1,048,000	)		-			-
-Change in the tax rate ⁽²⁾		-			2,234,656			-
-Non taxable income or non deductible expenses		44,482			428			(7,693	)
-Others		(13,835	)		(660	)		-
Total income tax		(13,171	)		53,077			(1,102,277	)

⁽¹⁾	Corresponds to the inflation effect on non-deferred tax assests and liabilities.

⁽²⁾	Corresponds to the effect of the reduction in the enacted tax rate on the net deferred tax liability according to the aforementioned.