XML 43 R16.htm IDEA: XBRL DOCUMENT
v3.19.1

Income and Social Contribution Taxes | 12 Months Ended
--- | ---
Dec. 31, 2018
Text block [abstract] |
Income and Social Contribution Taxes |
9. | Income and Social Contribution Taxes
a. Deferred Income (IRPJ) and Social Contribution Taxes (CSLL) The Company and its subsidiaries recognize deferred tax assets and liabilities, which are not subject to the statute of limitations, resulting from tax loss carryforwards, temporary differences, negative tax bases and revaluation of property, plant, and equipment, among others. Deferred tax assets are sustained by the continued profitability of their operations. Deferred IRPJ and CSLL are recognized under the following main categories:
|  | 12/31/2018 |  |  | 12/31/2017 |
|  |  |  |  | Restated (i) |
Assets—Deferred income and social contribution taxes on: |  |  |  |  |  |  |  |
Provision for impairment of assets |  |  | 116,191 |  |  |  | 103,092 |
Provisions for tax, civil, and labor risks |  |  | 154,516 |  |  |  | 145,767 |
Provision for post-employment benefits |  |  | 85,575 |  |  |  | 81,199 |
Provision for differences between cash and accrual basis |  |  | 147,376 |  |  |  | 40,755 |
Goodwill |  |  | 12,258 |  |  |  | 14,234 |
Business combination – fiscal basis vs. accounting basis of goodwill |  |  | 75,838 |  |  |  | 74,972 |
Provision for asset retirement obligation |  |  | 15,801 |  |  |  | 19,111 |
Other provisions |  |  | 144,354 |  |  |  | 158,952 |
Tax losses and negative basis for social contribution carryforwards (d) |  |  | 208,036 |  |  |  | 201,471 |
Total |  |  | 959,945 |  |  |  | 839,553 |
Offset the liabilities balance |  |  | (445,758 | ) |  |  | (225,492 | )
Net balance of assets |  |  | 514,187 |  |  |  | 614,061 |
Liabilities—Deferred income and social contribution taxes on: |  |  |  |  |  |  |  |
Revaluation of property, plant, and equipment |  |  | 1,981 |  |  |  | 2,109 |
Lease |  |  | 2,858 |  |  |  | 3,361 |
Provision for differences between cash and accrual basis |  |  | 138,332 |  |  |  | 44,440 |
Provision for goodwill |  |  | 187,845 |  |  |  | 131,811 |
Business combination – fair value of assets |  |  | 117,352 |  |  |  | 90,532 |
Temporary differences of foreign subsidiaries |  |  | — |  |  |  | 955 |
Other provisions |  |  | 6,687 |  |  |  | 35,926 |
Total |  |  | 455,055 |  |  |  | 309,134 |
Offset the assets balance |  |  | (445,758 | ) |  |  | (225,492 | )
Net balance of liabilities |  |  | 9,297 |  |  |  | 83,642 |
Changes in the net balance of deferred IRPJ and CSLL are as follows:
|  | 2018 |  |  | 2017 |  |  | 2016 |
|  |  |  |  | Restated (i) |  |  | Restated (i) |
Initial balance |  |  | 507,087 |  |  |  | 409,699 |  |  |  | 292,989 |
IFRS 9 and 15 adoption |  |  | 68,450 |  |  |  | 42,274 |  |  |  | 30,240 |
IRPJ and CSLL related to CBLSA goodwill – retrospective effect (i) |  |  | (45,118 | ) |  |  | — |  |  |  | — |
Subtotal – Initial balance – restated (i) |  |  | 530,419 |  |  |  | 451,973 |  |  |  | 323,229 |
Deferred IRPJ and CSLL recognized in income of the year |  |  | (162,417 | ) |  |  | 109,204 |  |  |  | 112,539 |
Deferred IRPJ and CSLL recognized in other comprehensive income |  |  | 133,124 |  |  |  | 13,389 |  |  |  | 18,938 |
Deferred IRPJ and CSLL recognized in business combination (see Notes 3.c and 3.d) |  |  | 1,054 |  |  |  | (45,728 | ) |  |  | — |
Others |  |  | 2,710 |  |  |  | 1,581 |  |  |  | (2,733 | )
Final balance |  |  | 504,890 |  |  |  | 530,419 |  |  |  | 451,973 |
(i) | See Note 2.x.
The estimated recovery of deferred tax assets relating to IRPJ and CSLL is stated as follows:
Up to 1 Year |  |  | 181,343 |
From 1 to 2 Years |  |  | 117,990 |
From 2 to 3 Years |  |  | 172,439 |
From 3 to 5 Years |  |  | 169,119 |
From 5 to 7 Years |  |  | 224,291 |
From 7 to 10 Years |  |  | 94,763 |
Total of deferred tax assets relating to IRPJ and CSLL |  |  | 959,945 |
b. Reconciliation of Income and Social Contribution Taxes IRPJ and CSLL are reconciled to the statutory tax rates as follows:
|  | 2018 |  |  | 2017 |  |  | 2016 |
|  |  |  |  | Restated (vi) |  |  | Restated (vi) |
Income (loss) before taxes and share of profit (loss) of joint ventures, and associates |  |  | 1,785,818 |  |  |  | 2,318,446 |  |  |  | 2,227,298 |
Statutory tax rates - % |  |  | 34 |  |  |  | 34 |  |  |  | 34 |
Income and social contribution taxes at the statutory tax rates |  |  | (607,178 | ) |  |  | (788,272 | ) |  |  | (757,281 | )
Adjustments to the statutory income and social contribution taxes: |  |  |  |  |  |  |  |  |  |  |  |
Nondeductible expenses (i) |  |  | (82,784 | ) |  |  | (105,017 | ) |  |  | (57,961 | )
Nontaxable revenues (ii) |  |  | 32,523 |  |  |  | 19,084 |  |  |  | 7,561 |
Adjustment to estimated income (iii) |  |  | 9,706 |  |  |  | 10,844 |  |  |  | 14,218 |
Interest on equity (iv) |  |  | (538 | ) |  |  | (550 | ) |  |  | (364 | )
Unrecorded deferred Income and Social Contribution Taxes Carryforwards deferred (v) |  |  | (95,480 | ) |  |  | — |  |  |  | — |
Other adjustments |  |  | (2,634 | ) |  |  | 2,059 |  |  |  | 6,957 |
Income and social contribution taxes before tax incentives |  |  | (746,385 | ) |  |  | (861,852 | ) |  |  | (786,870 | )
Tax incentives—SUDENE |  |  | 107,666 |  |  |  | 48,598 |  |  |  | 98,912 |
Income and social contribution taxes in the income statement |  |  | (638,719 | ) |  |  | (813,254 | ) |  |  | (687,958 | )
Current |  |  | (476,302 | ) |  |  | (922,458 | ) |  |  | (800,497 | )
Deferred |  |  | (162,417 | ) |  |  | 109,204 |  |  |  | 112,539 |
Effective IRPJ and CSLL rates - % |  |  | 35.8 |  |  |  | 35.1 |  |  |  | 30.9 |
(i) | Consist of certain expenses that cannot be deducted for tax purposes under applicable tax legislation, such as expenses with fines, donations, gifts, losses of assets, negative effects of foreign subsidiaries and certain provisions;
(ii) | Consist of certain gains and income that are not taxable under applicable tax legislation, such as the reimbursement of taxes and the reversal of certain provisions;
(iii) | Brazilian tax law allows for an alternative method of taxation for companies that generated gross revenues of up to R$ 78 million in their previous fiscal year. Certain subsidiaries of the Company adopted this alternative form of taxation, whereby income and social contribution taxes are calculated on a basis equal to 32% of operating revenues, as opposed to being calculated based on the effective taxable income of these subsidiaries. The adjustment to estimated income represents the difference between the taxation under this alternative method and the income and social contribution taxes that would have been paid based on the effective statutory rate applied to the taxable income of these subsidiaries;
(iv) | Interest on equity is an option foreseen in Brazilian corporate law to distribute profits to shareholders, calculated based on the long-term interest rate (“TJLP”), which does not affect the income statement, but is deductible for purposes of IRPJ and CSLL, being taxable to the beneficiary and deductible to the entity that pays.
(v) | See Note 9.d;
(vi) | See Note 2.x.
c. Tax Incentives—SUDENE The following subsidiaries are entitled to federal tax benefits providing for IRPJ reduction under the program for development of northeastern Brazil operated by the Superintendence for the Development of the Northeast (“SUDENE”), as shown below:
Subsidiary |  | Units |  |  | Incentive - % |  |  | Expiration |
Bahiana Distribuidora de Gás Ltda. |  |  | Aracaju base (1) |  |  |  | 75 |  |  |  | 2028 |
|  |  | Suape base (2) |  |  |  | 75 |  |  |  | 2018 |
|  |  | Mataripe base |  |  |  | 75 |  |  |  | 2024 |
|  |  | Caucaia base |  |  |  | 75 |  |  |  | 2025 |
|  |  | Juazeiro base (3) |  |  |  | 75 |  |  |  | 2026 |
Terminal Químico de Aratu S.A. – Tequimar |  |  | Suape terminal |  |  |  | 75 |  |  |  | 2020 |
|  |  | Aratu terminal |  |  |  | 75 |  |  |  | 2022 |
|  |  | Itaqui terminal |  |  |  | 75 |  |  |  | 2025 |
Oleoquímica Indústria e Comércio de Produtos Químicos Ltda. |  |  | Camaçari plant |  |  |  | 75 |  |  |  | 2021 |
Oxiteno Nordeste S.A. Indústria e Comércio |  |  | Camaçari plant |  |  |  | 75 |  |  |  | 2026 |
Empresa Carioca de Produtos Químicos S.A. |  |  | Camaçari plant |  |  |  | 75 |  |  |  | 2026 |
(1) | The subsidiary Bahiana Distribuidora de Gás Ltda. (“Bahiana”), obtained 75% income tax reduction incentive recognized by SUDENE, through an appraisal report on October 22, 2018, until 2028, due to the modernization for its Aracaju plant – Sergipe. On October 22, 2018, the constitutive benefit appraisal report was sent to the RFB for approval within a term of 120 days. As a result of the expiration of the statutes of limitation for the RFB to approve the constitutive benefit appraisal report setting the tacit approval of the application, the income tax reduction will be recognized by the subsidiary in the income statement in 2019.
(2) | The subsidiary Bahiana had the 75% income tax reduction incentive recognized by SUDENE, through an appraisal report on January 14, 2019, until 2028, due to the modernization for its Suape plant – Pernambuco. On January 23, 2019, the constitutive benefit appraisal report was sent to the RFB for approval within a term of 120 days.
(3) | The subsidiary Bahiana, obtained 75% income tax reduction incentive recognized by SUDENE, through an appraisal report on November 7, 2017, until 2026, due to productive unit implementation for its Juazeiro plant – Bahia. On November 27, 2017, the constitutive benefit appraisal report was sent to the RFB, for approval within a term of 120 days. As a result of the expiration of the statutes of limitation for the RFB to approve the constitutive benefit appraisal report setting the tacit approval of the application, the income tax reduction was recognized by the subsidiary in the income statement in 2018, in the total amount of R$ 149 with retroactive effect in January 2017.
d. Income and Social Contribution Taxes Carryforwards In 2018, the Company and certain subsidiaries had tax loss carryforwards related to income tax (IRPJ) of R$ 873,718 (R$ 576,948 in 2017) and negative basis of CSLL of R$ 876,315 (R$ 576,949 in 2017), whose compensations are limited to 30% of taxable income in a given tax year, which do not expire. Deferred income and social contribution tax assets were recognized in the amount of R$ 208,036 in 2018 (R$ 201,471 in 2017), supported by the technical study of the projection of taxable profits for the realization of deferred tax assets, reviewed by the Fiscal Council and approved by the Company’s Board of Directors. As a consequence of this study, in 2018, the subsidiary Extrafarma reversed the portion of deferred tax asset, whose realization exceeded the period of ten years, in the amount of R$ 39,462. The amount of deferred taxes not recognized due to the uncertainty of realization is R$ 220,832 in 2018 (R$ 128,418 in 2017). In addition, certain offshore subsidiaries had tax loss carryforwards of R$ 620,906 (R$ 388,178 in 2017) not recognized.

X
- Definition The entire disclosure for income taxes. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 12 -IssueDate 2018-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/XBRL?type=IAS&num=12&date=2018-03-01&anchor=sect_Disclosure&doctype=Standard -URIDate 2018-03-16 + Details
Name: | ifrs-full_DisclosureOfIncomeTaxExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Text block [abstract] + References No definition available. + Details
Name: | ugp_TextBlockAbstract
Namespace Prefix: | ugp_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration