Non-current tax receivables

Tax receivables are detailed as follows:

	As of December 31, 2022	As of December 31, 2021
	ThCh$	ThCh$
Tax on minimum presumed income of Argentine subsidiaries (1)	-	3,094
Total	-	3,094

(1)

Corresponds to the minimum presumed income tax of Argentine subsidiaries, whose recovery period is estimated to be more than one year.

Current tax liabilities

Tax payables are detailed as follows:

	As of December 31, 2022	As of December 31, 2021
	ThCh$	ThCh$
Income tax	2,649,908	21,256,053
Monthly tax payment in advance	5,048,222	12,699,115
Tax under Article N°21	244,604	66,617
Other	1,121,340	1,045,007
Total	9,064,074	35,066,792

Tax expense

The detail of income tax and deferred income tax expense is as follows:

	For the years ended as of December 31,
	2022	2021	2020
	ThCh$	ThCh$	ThCh$
Income as per deferred tax related to the origin and reversal of temporary differences	24,029,239	13,622,576	6,881,063
Prior year adjustments	(1,106,853)	487,424	1,574,181
Effect of change in tax rates	-	(374,389)	-
Tax loss benefits	15,425,726	(2,447,694)	5,474,838
Total deferred tax expense	38,348,112	11,287,917	13,930,082
Current tax expense	(38,717,929)	(95,200,176)	(48,572,545)
Prior period adjustments	105,874	1,282,486	(765,957)
Total (expenses) income for current taxes	(38,612,055)	(93,917,690)	(49,338,502)
(Loss) Income from income tax	(263,943)	(82,629,773)	(35,408,420)

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,
	2022	2021	2020
	ThCh$	ThCh$	ThCh$
Net income from cash flow hedge	3,352,151	(585,430)	(1,098,591)
Actuarial gains and losses deriving from defined benefit plans	1,981,923	(1,444,133)	488,246
Charge to equity	5,334,074	(2,029,563)	(610,345)

Efective Rate

The Company’s income tax expense

for the year ended December 31, 2022, 2021 and 2020 represents 0.20%, 27.35% and 24.67%,

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,
	2022		2021		2020
	ThCh$	Rate %	ThCh$	Rate %	ThCh$	Rate %
Income before taxes	135,748,395		301,680,454		143,603,276
Income tax using the statutory rate	(36,652,067)	27.00	(81,453,723)	27.00	(38,772,885)	27.00
Adjustments to reach the effective rate
Tax effect of permanent differences, net	37,221,335	(27.42)	5,195,230	(1.70)	6,626,165	(4.61)
Effect of change in tax rate	-	-	(374,389)	0.12	-	-
Derecognition of non recoverable deferred tax assets	1,361,100	(1.00)	(4,158,316)	1.35	(3,529,795)	2.46
Effect of tax rates in foreing subsidiaries	(1,193,332)	0.88	(3,608,485)	1.16	(540,129)	0.38
Prior year adjustments	(1,000,979)	0.74	1,769,910	(0.58)	808,224	(0.56)
Income tax, as reported	(263,943)	0.20	(82,629,773)	27.35	(35,408,420)	24.67

Deferred taxes

Deferred tax assets and liabilities included in the Consolidated Financial Statements are detailed as follows:

	As of December 31, 2022	As of December 31, 2021
	ThCh$	ThCh$
Deferred taxes assets
Accounts receivable impairment provision	1,509,712	1,526,101
Other non-tax expenses	26,204,718	17,623,677
Benefits to staff	4,579,775	4,175,349
Inventory impairment provision	1,381,757	871,754
Severance indemnity	11,437,005	9,209,019
Inventory valuation	6,677,494	5,777,024
Intangibles	417,108	466,924
Other assets	16,315,366	27,381,615
Tax loss carryforwards	21,637,825	11,658,387
Subtotal by deferred tax assets	90,160,760	78,689,850
Deferred tax liabilities offset	(62,963,553)	(48,118,631)
Total assets from deferred taxes	27,197,207	30,571,219

Deferred taxes liabilities
Property, plant and equipment depreciation	99,475,409	88,073,083
Agricultural operation expenses	8,796,925	7,553,603
Manufacturing indirect activation costs	8,594,229	7,104,468
Intangibles	22,707,420	23,053,494
Land	23,473,209	27,899,218
Other liabilities	12,616,189	12,520,436
Subtotal by deferred tax liabilities	175,663,381	166,204,302
Deferred tax assets offset	(62,963,553)	(48,118,631)
Total liabilities from deferred taxes	112,699,828	118,085,671
Total	(85,502,621)	(87,514,452)

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 and Bolivia tax losses expire after 3 years.

Changes in deferred tax assets are detailed as follows:

Analysis of the deferred tax movement during the year	ThCh$
As of January 1, 2021	(67,685,234)
Deferred taxes related to credited items (charged) directly to equity (1)	(22,236,159)
Deferred Tax Losses Tax absorption	(7,485,845)
Deferred taxes from tax loss absorption	11,287,917
Conversion effect	49,002
Deferred taxes against equity	(1,444,133)
Changes	(19,829,218)
As of December 31, 2021	(87,514,452)

As of January 1, 2022
Deferred taxes related to credited items (charged) directly to equity (1)	(43,474,235)
Deferred Tax Losses Tax absorption	(1,169,111)
Deferred taxes from tax loss absorption	38,348,112
Conversion effect	6,325,142
Deferred taxes against equity	1,981,923
Changes	2,011,831
As of December 31, 2022	(85,502,621)

(1)

Corresponds to the financial effect of the application IAS 29 "Financial reporting in hyperinflationary economies.

In Argentina a Tax Reform No. 27,430 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 years 2018 and 2019, and 13% as the year 2020), applicable as of the reporting results 2018.

On December 21, 2019, the law No.

27,541 called the “Law of Social Solidarity and Productive Reactivation in the Public Emergency" which modifies some articles of law No.

27,430 was enacted. It mainly postpones one more year (for the year 2020) the increase of the income tax rate of 30% and the withholding tax rate on dividends of 7%, setting up the income tax rate in 25% and the withholding tax rate in 13% on dividends from the year 2021. The application of this new law did not have significant effects on these consolidated financial statements.

On June 16, 2021, Law No.

27,630 was enacted, which again modifies the income tax rates for fiscal years beginning on or after January 1, 2021. The application of this new law did not have significant effects on these consolidated financial statements.

The companies will determine the amount of the tax using the following scale:

Net cumulative taxable income		Will pay ARS $	Plus % of	On the excess of
More than ARS $	To ARS $	Will pay ARS $	Plus % of	ARS $
-	7,604,949	-	25%	-
7,604,949	76,049,486	1,901,237	30%	7,604,949
76,049,486	From now on	22,434,598	35%	76,049,486

The withholding rate for dividend payments is maintained at 7%.