XML 54 R15.htm IDEA: XBRL DOCUMENT
v3.19.1

CURRENT AND DEFERRED INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2018
CURRENT AND DEFERRED INCOME TAXES |
CURRENT AND DEFERRED INCOME TAXES | NOTE 9 - CURRENT AND DEFERRED INCOME TAXES 9.1 Tax Reform On September 29, 2014, the Official Daily Newspaper published Law N°20,780 that amends the Chilean tax regime, with the main following changes:
| · |  | It establishes a new system of semi-integrated taxation, which can be used as an alternative to the integrated regime of attributed income. Taxpayers may opt freely to any of the two to pay their taxes. In the case of Embotelladora Andina S.A. by a general rule established by law the semi-integrated taxation system applies, which was ratified by the Shareholders’ Meeting.
| · |  | The semi-integrated system establishes the gradual increase in the first category tax rate for the business years 2014, 2015, 2016, 2017 and 2018 onwards, increasing to 21%, 22.5%, 24%, 25.5% and 27% respectively.
9.2 Current tax assets
Description |  | 12.31.2018 |  | 12.31.2017
|  | ThCh$ |  | ThCh$
Tax credits (*) |  | 2,532,056 |  | —
Total |  | 2,532,056 |  | —
(*) Tax credits correspond to income tax credits on training expenses, purchase of Property, plant and equipment, and donations. 9.3 Current tax liabilities Current tax payable are detailed as follows:
Description |  | 12.31.2018 |  | 12.31.2017
|  | ThCh$ |  | ThCh$
Income tax expense |  | 9,338,612 |  | 3,184,965
Total |  | 9,338,612 |  | 3,184,965
9.4 Income tax expense The current and deferred income tax expenses are detailed as follows:
Item |  | 12.31.2018 |  | 12.31.2017 |  | 12.31.2016
|  | ThCh$ |  | ThCh$ |  | ThCh$
Current income tax expense |  | 38,313,980 |  | 40,183,261 |  | 35,902,002
Current tax adjustment previous period |  | 312,403 |  | 137,455 |  | 534,392
Withholding tax expense foreign subsidiaries |  | 7,364,213 |  | 6,730,031 |  | 7,645,218
Other current tax expense (income) |  | 474,105 |  | (5,733) |  | 92,008
Current income tax expense |  | 46,464,701 |  | 47,045,014 |  | 44,173,620
Income (expense) for the creation and reversal of current tax difference (*) |  | 9,100,154 |  | 4,752,620 |  | 4,633,473
Expense (income) for deferred taxes |  | 9,100,154 |  | 4,752,620 |  | 4,633,473
Total income tax expense |  | 55,564,855 |  | 51,797,634 |  | 48,807,093
(*) It includes the effects for the adoption of IAS 29. 9.5 Deferred income taxes The net cumulative balances of temporary differences that give rise to deferred tax assets and liabilities are detailed as follows:
|  | 12.31.2018 |  | 12.31.2017
Temporary differences |  | Assets |  | Liabilities |  | Assets |  | Liabilities
|  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$
Property, plant and equipment |  | 5,420,447 |  | 46,181,359 |  | 5,978,377 |  | 47,179,903
Obsolescence provision |  | 910,076 |  | 112,359 |  | 2,215,341 |  | 200,979
Employee benefits |  | 5,169,161 |  | 131,829 |  | 5,391,796 |  | —
Post-employment benefits |  | 90,941 |  | 1,014,354 |  | 61,155 |  | 1,020,522
Tax loss carried-forwards (1) |  | 9,137,392 |  | — |  | 10,056,534 |  | —
Tax Goodwill Brazil |  | 18,836,838 |  | — |  | 23,195,957 |  | —
Contingency provision |  | 26,796,262 |  | — |  | 31,177,351 |  | —
Foreign exchange differences (2) |  | 13,083,953 |  | — |  | 7,631,498 |  | —
Allowance for doubtful accounts |  | 1,262,977 |  | — |  | 1,155,542 |  | —
Coca-Cola incentives (Argentina) |  | 352,061 |  | — |  | 451,790 |  | —
Assets and liabilities for placement of bonds |  | — |  | 1,327,727 |  | — |  | 1,297,000
Lease liabilities |  | 1,328,320 |  | — |  | 1,083,010 |  | —
Inventories |  | 347,470 |  | — |  | 350,746 |  | —
Distribution rights |  | — |  | 173,273,994 |  | — |  | 163,850,599
Others |  |  |  | 5,940,224 |  | 3,729,093 |  | 920,772
Subtotal |  | 82,735,898 |  | 227,981,846 |  | 92,478,190 |  | 214,469,775
Total Assets and net liabilities |  | — |  | 145,245,948 |  | 3,212,981 |  | 125,204,566
| (1) |  | Tax losses mainly associated with the subsidiary Embotelladora Andina Chile S.A. In Chile tax losses have no expiration date
| (2) |  | Corresponds to differed taxes for exchange rate differences generated on the translation of debt expressed in foreign currency in the subsidiary Rio de Janeiro Refrescos Ltda. and which for tax purposes are recognized in Brazil when incurred. This item also includes the effects of the differences generated in the appraisal of forward contracts.
9.6 Deferred tax liability movement The movement in deferred income tax accounts is as follows:
Item |  | 12.31.2018 |  | 12.31.2017 |  | 12.31.2016
|  | ThCh$ |  | ThCh$ |  | ThCh$
Opening Balance |  | 121,991,585 |  | 125,608,802 |  | 130,201,701
Increase (decrease) in deferred tax |  | 11,303,016 |  | (3,417,011) |  | (6,409,481)
Increase (decrease) due to foreign currency translation (*) |  | 11,951,347 |  | (200,206) |  | 1,816,582
Movements |  | 23,254,363 |  | (3,617,217) |  | (4,592,899)
Ending balance |  | 145,245,948 |  | 121,991,585 |  | 125,608,802
(*) It includes the effects for the adoption of IAS 29. 9.7 Distribution of domestic and foreign tax expense The composition of domestic and foreign tax expense is detailed as follows:
Income tax |  | 12.31.2018 |  | 12.31.2017 |  | 12.31.2016
|  | ThCh$ |  | ThCh$ |  | ThCh$
Current income taxes |  |  |  |  |  |
Foreign |  | (24,442,984) |  | (30,258,395) |  | (24,752,106)
Domestic |  | (22,021,717) |  | (16,786,619) |  | (19,421,514)
Current income tax expense |  | (46,464,701) |  | (47,045,014) |  | (44,173,620)
Deferred income taxes |  |  |  |  |  |
Foreign |  | (9,121,332) |  | (4,667,982) |  | (4,291,287)
Domestic |  | 21,178 |  | (84,638) |  | (342,186)
Deferred income tax expense |  | (9,100,154) |  | (4,752,620) |  | (4,633,473)
Income tax expense |  | (55,564,855) |  | (51,797,634) |  | (48,807,093)
9.8 Reconciliation of effective rate Below is the reconciliation between the effective tax rate and the statutory rate:
Reconciliation of effective rate |  | 12.31.2018 |  | 12.31.2017 |  | 12.31.2016 |
|  | ThCh$ |  | ThCh$ |  | ThCh$ |
Net income before taxes |  | 153,606,681 |  | 170,798,359 |  | 140,856,204 |
Tax expense at legal rate (27.0%) |  | (41,544,270) |  | — |  | — |
Tax expense at legal rate (25.5%) |  | — |  | (43,553,581) |  | (33,805,489) |
Effect of a different tax rate in other jurisdictions |  | 967,671 |  | (4,971,103) |  | (9,214,270) |
Permanent differences: |  |  |  |  |  |  |
Non-taxable revenues |  | 12,752,599 |  | 9,645,068 |  | 6,068,410 |
Non-deductible expenses |  | (11,141,237) |  | (4,020,729) |  | (419,761) |
Tax effect on excess tax provision prior periods |  | (295,632) |  | 125,021 |  | 86,731 |
Effect of tax restatement Chilean companies |  | 2,566,163 |  | (1,465,753) |  | (1,875,343) |
Foreign subsidiaries tax withholding expense and other legal tax debits and credits |  | (18,870,149) |  | (7,556,557) |  | (9,647,371) |
Adjustments to tax expense |  | (14,988,256) |  | (3,272,950) |  | (5,787,334) |
Tax expense at effective rate |  | (55,564,855) |  | (51,797,634) |  | (48,807,093) |
Effective rate |  | 36.2 | % | 30.6 | % | 34.7 | %
Below are the income tax rates applicable in each jurisdiction where the Company operates:
|  | Rate |
Country |  | 2018 |  | 2017 |  | 2016 |
Chile |  | 27.0 | % | 25.5 | % | 24.0 | %
Brazil |  | 34.0 | % | 34.0 | % | 34.0 | %
Argentina |  | 30.0 | % | 35.0 | % | 35.0 | %
Paraguay |  | 10.0 | % | 10.0 | % | 10.0 | %

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
- References No definition available. + Details
Name: | ifrs-full_DisclosureOfTemporaryDifferenceUnusedTaxLossesAndUnusedTaxCreditsAbstract
Namespace Prefix: | ifrs-full_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration