INCOME TAX AND DEFERRED TAX (Tables)

12 Months Ended

Dec. 31, 2020

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, 2020, 2019 and 2018 is as follows:

	2020			2019			2018
Current income tax		(3,439,545	)		(3,651,647	)		(6,698,265	)
Special revaluation tax		-			-			(2,194,810	)
Deferred income tax		(964,878	)		(1,826,938	)		8,865,492
Total income tax		(4,404,423	)		(5,478,585	)		(27,583	)

Net Deferred Tax Assets and Liabilities

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

	2020			2019
Deferred tax assets:
Deferred tax assets to be recovered after more than 12 months		1,250,309			1,356,732
Deferred tax assets to be recovered after less than 12 months		372,361			372,055
Deferred tax liabilities:
Deferred tax liabilities to be recovered after more than 12 months		(8,828,384	)		(8,172,277	)
Deferred tax liabilities to be recovered after less than 12 months		(242,878	)		(40,224	)
Deferred tax liabilities, net		(7,448,592	)		(6,483,714	)

Components of Net Deferred Tax Assets and Liabilities

The components of the net deferred tax assets and liabilities as of December 31, 2020, 2019 and 2018 are the following:

Deferred tax assets	Other receivables		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 loss carryforward		Tax inflation adjustment		Total
As of December 31, 2018		-		-			811			4,761			211,326			853,576			665,948			-		-		1,736,422
Charge in results		-		995			(327	)		(3,766	)		(511	)		(36,365	)		20,319			-		12,020		(7,635	)
As of December 31, 2019		-		995			484			995			210,815			817,211			686,267			-		12,020		1,728,787
Charge in results		13,517		(995	)		(484	)		(352	)		12,320			(89,081	)		(46,704	)		944		4,718		(106,117	)
As of December 31, 2020		13,517		-			-			643			223,135			728,130			639,563			944		16,738		1,622,670

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, 2018		5,945			(65,093	)		(6,111,056	)		(198,776	)		(24,218	)		-			-			(6,393,198	)
Charge in results		(5,945	)		29,334			190,184			195,879			(3,194	)		(2,538	)		(2,223,023	)		(1,819,303	)
As of December 31, 2019		-			(35,759	)		(5,920,872	)		(2,897	)		(27,412	)		(2,538	)		(2,223,023	)		(8,212,501	)
Charge in results		-			15,815			693,689			1,861			(6,112	)		(199,006	)		(1,365,008	)		(858,761	)
As of December 31, 2020		-			(19,944	)		(5,227,183	)		(1,036	)		(33,524	)		(201,544	)		(3,588,031	)		(9,071,262	)

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, 2020, 2019 and 2018 as follows:

	2020			2019			2018
Pre tax income		7,690,622			22,911,548			23,935,579
Statutory income tax rate		30	%		30	%		30	%

Pre tax income at statutory income tax rate		(2,307,187	)		(6,873,464	)		(7,180,674	)
Tax effects due to:
- Restatement by inflation		2,095,061			2,776,728			505,544
- Unrecognized tax loss carryforward ⁽¹⁾		(2,036,579	)		-			-
- Special revalution tax		-			-			(2,194,810	)
- Adjustment affidavit previous year		(9,073	)		186,024			(632	)
- Tax revaluation benefit		-			-			8,778,172
- Tax inflation adjustment		(2,775,060	)		(2,720,752	)		-
- Others		628,415			1,152,879			64,817
Total income tax		(4,404,423	)		(5,478,585	)		(27,583	)