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Income taxes
 12 Months Ended
Dec. 31, 2023
Income Taxes  
Income taxes

Note 25 Income taxes

 

Tax receivables

 

Taxes receivables are detailed as follows:

 

   
  As of December 31, 2023 As of December 31, 2022
ThCh$ ThCh$
Refundable tax previous year 7,124,688 2,566,562
Tax payments in advance 20,322,040 34,996,163
Benefits for tax losses 764,712 8,545,035
Others credits 574,807 599,765
Total 28,786,247 46,707,525

 

Current tax liabilities

 

Tax payables are detailed as follows:

 

   
  As of December 31, 2023 As of December 31, 2022
ThCh$ ThCh$
Income tax 5,968,227 2,649,908
Monthly tax payment in advance 3,056,567 5,048,222
Tax under Article N°21 214,732 244,604
Others 699,138 1,121,340
Total 9,938,664 9,064,074

 

Tax expense

 

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

 

     
  For the years ended as of December 31,
2023 2022 2021
ThCh$ ThCh$ ThCh$
Income as per deferred tax related to the origin and reversal of temporary differences 35,969,675 24,029,239 13,622,576
Prior year adjustments 418,002 (1,106,853) 487,424
Effect of change in tax rates – – (374,389)
Tax loss benefits 17,131,132 15,425,726 (2,447,694)
Total deferred tax expense 53,518,809 38,348,112 11,287,917
Current tax expense (37,775,488) (38,717,929) (95,200,176)
Prior period adjustments (476,066) 105,874 1,282,486
Total (expenses) income for current taxes (38,251,554) (38,612,055) (93,917,690)
(Loss) Income from income tax 15,267,255 (263,943) (82,629,773)

 

 

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,
2023 2022 2021
ThCh$ ThCh$ ThCh$
Net income from cash flows hedge 1,182,375 3,352,151 (585,430)
Actuarial gains and losses deriving from defined benefit plans (360,233) 1,981,923 (1,444,133)
Charge to equity 822,142 5,334,074 (2,029,563)

 

Efective Rate

 

The Company’s income tax expense as of December 31, 2023, 2022 and 2021 represents 14.80%, 0.20% and 27.39%, 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,
2023 2022 2021
ThCh$ Rate % ThCh$ Rate % ThCh$ Rate %
Income before taxes 103,158,188   135,748,395   301,680,454  
Income tax using the statutory rate (27,852,711)   27.00 (36,652,067)   27.00 (81,453,723)   27.00
Adjustments to reach the effective rate            
Tax effect of permanent differences, net 38,422,245 (37.25) 37,221,335 (27.42) 5,195,230 (1.72)
Effect of change in tax rates – – – – (374,389) 0.12
Non recoverable deferred tax assets, net 592,008 (0.57) 1,361,100 (1.00) (4,158,316) 1.38
Effect of tax rates in foreing subsidiaries 4,163,777 (4.04) (1,193,332) 0.88 (3,608,485) 1.20
Prior year adjustments (58,064) 0.06 (1,000,979) 0.74 1,769,910 (0.59)
Income tax, as reported 15,267,255 (14.80) (263,943)     0.20 (82,629,773)   27.39

 

 

Deferred taxes

 

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

 

   
  As of December 31, 2023 As of December 31, 2022
ThCh$ ThCh$
Deferred tax assets    
Impairment provision of accounts receivable 2,062,740 1,509,712
Others non-tax expenses 32,959,493 28,840,149
Benefits to staff 4,317,938 4,579,775
Inventory impairment provision 1,513,107 1,381,757
Severance indemnity 10,599,423 11,437,005
Inventory valuation 10,329,504 6,677,494
Intangibles 651,925 417,108
Property, Plant and Equipment 6,321,576 6,970,568
Deferred taxes related to assets arising from a single transaction 11,603,601 11,491,164
Others assets 5,057,030 3,087,251
Tax loss carryforwards 31,814,137 21,637,825
Subtotal by deferred tax assets 117,230,474 98,029,808
Deferred tax liabilities offset (88,778,816) (70,832,601)
Total assets from deferred taxes 28,451,658 27,197,207
     
Deferred taxes liabilities    
Property, Plant and Equipment 112,968,663 122,295,723
Agricultural operation expenses 11,065,968 8,796,925
Manufacturing indirect activation costs 9,669,456 8,594,229
Intangibles 20,570,691 22,707,420
Deferred taxes related to liabilities arising from a single transaction 10,290,501 10,243,205
Others liabilities 10,570,432 10,894,927
Subtotal by deferred tax liabilities 175,135,711 183,532,429
Deferred tax assets offset (88,778,816) (70,832,601)
Total liabilities from deferred taxes 86,356,895 112,699,828
Total   (57,905,237) (85,502,621)

 

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, 2022 (87,514,452)
Others increases (decreases) (1) (43,474,235)
Deferred tax losses tax absorption (1,169,111)
Deferred income tax credit 38,348,112
Conversion effect 6,325,142
Deferred taxes against equity 1,981,923
Sub-Total 2,011,831
As of December 31, 2022 (85,502,621)
   
As of January 1, 2023
Others increases (decreases) (1) (48,197,458)
Deferred tax losses tax absorption (559,054)
Deferred income tax credit 53,518,809
Conversion effect 23,731,521
Deferred taxes against equity (360,233)
Deferred income tax on business combinations (2) (536,201)
Sub-Total 27,597,384
As of December 31, 2023 (57,905,237)

 

(1)Corresponds to the financial effect of the application IAS 29 "Financial reporting in hyperinflationary economies.
(2)See Note 1 - General information, letter C), number (12).