XML 49 R30.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Income taxes | 12 Months Ended
--- | ---
Dec. 31, 2017
Disclosure of current, deferred and income taxes [Abstract] |
Disclosure Of Current Deferred And Income Taxes Explanatory [Text Block] | Note 24 Income taxes Current tax assets Taxes receivables are detailed as follows:
|  | As of December 31, 2017 |  | As of December 31, 2016 |
|  | ThCh$ |  | ThCh$ |
Refundable tax previous year |  |  | 9,640,567 |  |  | 4,436,810 |
Taxes under claim (1) |  |  | 2,141,476 |  |  | 2,141,476 |
Argentinean tax credits |  |  | 4,813,614 |  |  | 2,532,114 |
Monthly provisions |  |  | 11,155,690 |  |  | 18,860,164 |
Payment of absorbed profit provision |  |  | 24,104 |  |  | 75,141 |
Other credits |  |  | 1,425,708 |  |  | 1,377,774 |
Total |  |  | 29,201,159 |  |  | 29,423,479 |
(1) | This item includes claims for refund of first category taxes (Provisional payment of absorved profit) for an amount of ThCh$ 968,195 that was presented in April 2014 from the commercial year 2013 and claim to ThCh$ 1,173,281 presented in April 2010 from the commercial year 2009.
Current tax liabilities Taxes payable are detailed as follows:
|  | As of December 31, 2017 |  | As of December 31, 2016 |
|  | ThCh$ |  | ThCh$ |
Chilean income taxes |  |  | 18,335,047 |  |  | 7,033,363 |
Monthly provisional payments |  |  | 3,970,511 |  |  | 4,365,187 |
Tax article 21 |  |  | 105,903 |  |  | 68,824 |
Estimated Argentinean minimum gain subsidiaries taxes |  |  | - |  |  | 339,060 |
Others |  |  | 115,173 |  |  | - |
Total |  |  | 22,526,634 |  |  | 11,806,434 |
Tax expense The income tax and deferred tax expense for the years ended as of December 31, 2017, 2016 and 2015, are detailed as follows:
|  | For the years ended as of December 31, |
|  | 2017 |  | 2016 |  | 2015 |
|  | ThCh$ |  | ThCh$ |  | ThCh$ |
Income as per deferred tax related to the origin and reversal of temporary differences |  |  | (500,800) |  |  | (878,629) |  |  | (454,933) |
Prior year adjustments |  |  | 569,212 |  |  | 3,838,136 |  |  | 3,204,656 |
Effect of change in tax rates |  |  | (50,071) |  |  | (856,612) |  |  | (1,066,964) |
Tax benefits (loss) |  |  | 611,282 |  |  | (765,292) |  |  | 248,559 |
Total deferred tax expense |  |  | 629,623 |  |  | 1,337,603 |  |  | 1,931,318 |
Current tax expense |  |  | (47,841,130) |  |  | (31,285,976) |  |  | (48,168,474) |
Prior period adjustments |  |  | (1,154,469) |  |  | (298,010) |  |  | (3,877,360) |
(Loss) Income from income tax |  |  | (48,365,976) |  |  | (30,246,383) |  |  | (50,114,516) |
Deferred taxes related to items charged or credited directly to the Consolidated Statement of Comprehensive Income are detailed as follows:
|  | For the years ended as of December 31, |
|  | 2017 |  | 2016 |  | 2015 |
|  | ThCh$ |  | ThCh$ |  | ThCh$ |
Net income from cash flow hedge |  |  | 728 |  |  | (20,648) |  |  | (17,563) |
Actuarial gains and losses deriving from defined benefit plans |  |  | (47,228) |  |  | 659,198 |  |  | 314,541 |
Charge to equity |  |  | (46,500) |  |  | 638,550 |  |  | 296,978 |
Effective Rate The Company’s income tax expense as of December 31, 2017, 2016 and 2015 represents 24.59%, 17.80% and 26.23%, respectively of income before taxes. The following is reconciliation between such effective tax rate and the statutory tax rate valid in Chile.
|  | For the years ended as of December 31, |
|  | 2017 |  | 2016 |  | 2015 |
|  | ThCh$ |  | Rate % |  | ThCh$ |  | Rate % |  | ThCh$ |  | Rate % |
Income before taxes |  |  | 196,474,395 |  |  |  |  |  | 170,328,270 |  |  |  |  |  | 190,640,106 |  |  |  |
Income tax using the statutory rate |  |  | (50,100,971) |  |  | 25.50 |  |  | (40,878,785) |  |  | 24.00 |  |  | (42,894,024) |  |  | 22.50 |
Adjustments to reach the effective rate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tax effect of permanent differences, net |  |  | 4,071,180 |  |  | (2.10) |  |  | 10,357,858 |  |  | (6.10) |  |  | (3,202,337) |  |  | 1.68 |
Effect of change in tax rate |  |  | (50,071) |  |  | 0.03 |  |  | (856,612) |  |  | 0.50 |  |  | (1,066,964) |  |  | 0.50 |
Effect of tax rates in Argentina and Uruguay |  |  | (1,700,857) |  |  | 0.86 |  |  | (1,308,482) |  |  | 0.80 |  |  | (2,278,487) |  |  | 1.20 |
Prior year adjustments |  |  | (585,257) |  |  | 0.30 |  |  | 2,439,638 |  |  | (1.40) |  |  | (672,704) |  |  | 0.35 |
Income tax, as reported |  |  | (48,365,976) |  |  | 24.59 |  |  | (30,246,383) |  |  | 17.80 |  |  | (50,114,516) |  |  | 26.23 |
Deferred taxes Deferred tax assets and liabilities included in the Consolidated Financial Statements are detailed as follows:
|  | As of December 31, 2017 |  | As of December 31, 2016 |
|  | ThCh$ |  | ThCh$ |
Movement of deferred tax assets |  |  |  |  |  |  |
Accounts receivable impairment provision |  |  | 1,136,789 |  |  | 861,158 |
Other provisions |  |  | 17,032,172 |  |  | 11,303,607 |
Benefits to staff |  |  | 4,658,962 |  |  | 2,166,999 |
Inventory impairment provision |  |  | 401,487 |  |  | 501,275 |
Severance indemnity |  |  | 6,133,014 |  |  | 5,990,249 |
Inventory valuation |  |  | 2,228,552 |  |  | 2,337,591 |
Intangibles |  |  | 229,725 |  |  | 206,616 |
Other assets |  |  | 2,672,022 |  |  | 3,536,573 |
Tax loss carryforwards |  |  | 5,858,606 |  |  | 4,960,567 |
Total assets from deferred taxes |  |  | 40,351,329 |  |  | 31,864,635 |
Deferred taxes liabilities |  |  |  |  |  |  |
Property, plant and equipment depreciation |  |  | 45,380,381 |  |  | 37,536,881 |
Agricultural operation expenses |  |  | 7,130,896 |  |  | 5,698,674 |
Manufacturing indirect activation costs |  |  | 5,258,290 |  |  | 4,865,509 |
Intangibles |  |  | 11,736,406 |  |  | 12,351,442 |
Land |  |  | 23,313,756 |  |  | 24,685,250 |
Other liabilities |  |  | 1,530,382 |  |  | 1,677,702 |
Total liabilities from deferred taxes |  |  | 94,350,111 |  |  | 86,815,458 |
Total |  |  | (53,998,782) |  |  | (54,950,823) |
No deferred taxes have been recorded for temporary differences between the taxes and accounting value generated by investments in subsidiaries; consequently deferred tax is not recognized for the translation adjustments or investments in joint ventures and associates. In accordance with current tax laws in Chile, tax losses do not expire and can be applied indefinitely. Argentina, Uruguay and Paraguay tax losses expire after 5 years. On September 29, 2014 Act No. 20,780 was published in Chile, regarding the so called “Tax reform” which introduces amendments, among others, to the Income tax system. The said Act provides that corporations will apply by default the "Partially Integrated System", unless a future Extraordinary Shareholders Meeting agrees to opt for the "Attributed Income Regime”. The Act provides for the "Partially Integrated System" a gradual increase in the First Category Income tax rate, going from 20% to 21% for the business year 2014, to 22.5% for the business year 2015, to 24% for the business year 2016, to 25.5% for the business year 2017 and to 27% starting 2018 business year. Additionaly, in Argentina a Tax Reform was approved by the government, which, amongst other measures, increases the excise tax on several beverages, including beer from 8% to 14% on the producer price, that applies as of March 1st, 2018, and also gradually reduces for the reporting year 2018 the corporate income tax rate from 35% to 25% (30% for the year 2018 and 2019, and 25% as the year 2020). The effects as of December 31st, 2017 were recognized, without affecting significantly the Consolidated Financial Statements. Additionally, on earnings distributed as dividends a retention will apply that will gradually increase from 0% to 13% (7% for the year 2018 and 2019, and 13% as the year 2020), applicable as of the reporting results 2018. Changes in deferred tax assets are detailed as follows:
Movement of deferred tax assets |  | ThCh$ |
As of January 1, 2016 |  |  | (55,708,250) |
Increase in joint operation |  |  | (1,514,955) |
Increase by business combination |  |  | (25,507) |
Deferred Tax Losses Tax absorption |  |  | (178,473) |
Deferred taxes from tax loss carry forwards absortion |  |  | 1,337,603 |
Conversion effect |  |  | 245,227 |
Deferred taxes against equity |  |  | 638,550 |
Other deferred movements taxes |  |  | 254,982 |
Change |  |  | 757,427 |
As of December 31, 2016 |  |  | (54,950,823) |
As of January 1, 2017 |  |  |  |
Deferred Tax Losses Tax absorption |  |  | (199,082) |
Deferred taxes from tax loss carry forwards absortion |  |  | 629,622 |
Conversion effect |  |  | 461,402 |
Other deferred movements taxes |  |  | 60,099 |
Change |  |  | 952,041 |
As of December 31, 2017 |  |  | (53,998,782) |

X
- References No definition available. + Details
Name: | ccu_DisclosureOfCurrentDeferredAndIncomeTaxesAbstract
Namespace Prefix: | ccu_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | ccu_DisclosureOfCurrentDeferredAndIncomeTaxesExplanatoryTextBlock
Namespace Prefix: | ccu_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration