INCOME TAX AND DEFERRED TAX (Tables)

12 Months Ended

Dec. 31, 2019

INCOME TAX AND DEFERRED TAX [Abstract]

The reconciliation between the charge computed for tax purposes and the income tax expense charged to the statement of comprehensive income in the years ended December 31, 2019, 2018 and 2017 is as follows:

	2019			2018			2017
Current income tax		(2,682,261	)		(4,920,109	)		(3,757,523	)
Special revaluation tax		-			(1,612,164	)		-
Deferred income tax		(1,341,950	)		6,512,012			3,839,173
Total income tax		(4,024,211	)		(20,261	)		81,650

Net Deferred Tax Assets and Liabilities

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

	2019			2018
Deferred tax assets:
Deferred tax assets to be recovered after more than 12 months		996,567			1,044,262
Deferred tax assets to be recovered after less than 12 months		273,287			231,200
Deferred tax liabilities:
Deferred tax liabilities to be recovered after more than 12 months		(6,002,822	)		(4,527,584	)
Deferred tax liabilities to be recovered after less than 12 months		(29,546	)		(168,442	)
Deferred tax liabilities, net		(4,762,514	)		(3,420,564	)

Components of Net Deferred Tax Assets and Liabilities

The components of the net deferred tax assets and liabilities as of December 31, 2019, 2018 and 2017 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		Tax inflation adjustment		Total
As of December 31, 2017		-		-			-			173,575			516,052			436,324		-		1,125,951
Charge in results		-		596			3,497			(18,349	)		110,929			52,838		-		149,511
As of December 31, 2018		-		596			3,497			155,226			626,981			489,162		-		1,275,462
Charge in results		731		(240	)		(2,766	)		(375	)		(26,711	)		14,925		8,828		(5,608	)
As of December 31, 2019		731		356			731			154,851			600,270			504,087		8,828		1,269,854

Deferred tax liabilities	Deferred sales			Loans			Property, Plant and Equipment			Cash and cash equivalents			Inventaries			Other financial assets at amortized cost			Tax inflation adjustment			Total
As of December 31, 2017		-			(5,633	)		(11,016,028	)		(25,325	)		(11,541	)		-			-			(11,058,527	)
Charge in results		4,367			(42,180	)		6,527,245			(120,683	)		(6,248	)		-			-			6,362,501
As of December 31, 2018		4,367			(47,813	)		(4,488,783	)		(146,008	)		(17,789	)		-			-			(4,696,026	)
Charge in results		(4,367	)		21,547			139,697			143,880			(2,346	)		(1,864	)		(1,632,889	)		(1,336,342	)
As of December 31, 2019		-			(26,266	)		(4,349,086	)		(2,128	)		(20,135	)		(1,864	)		(1,632,889	)		(6,032,368	)

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, 2019, 2018 and 2017 as follows:

	2019			2018			2017
Pre tax income		16,829,329			17,581,516			8,765,549
Statutory income tax rate		30	%		30	%		35	%
Pre tax income at statutory income tax rate		(5,048,799	)		(5,274,455	)		(3,067,942	)
Tax effects due to:
- Restatement by inflation		2,039,603			371,340			(287,676	)
- Tax revalution benefit		-			6,447,872			-
- Special revalution tax		-			(1,612,164	)		-
- Adjustment affidavit previous year		136,641			(464	)		-
- Change in the taxe rate		-			-			3,437,625
- Tax inflation adjustment		(1,998,487	)		-			-
- Others		846,831			47,610			(357	)
Total income tax		(4,024,211	)		(20,261	)		81,650