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15. INCOME TAX AND SOCIAL CONTRIBUTION (Tables)
 12 Months Ended
Dec. 31, 2018
Income Tax And Social Contribution Tables Abstract  
Income tax and social contribution income (expense)
  Consolidated
  12/31/2018   12/31/2017 12/31/2016
Income tax and social contribution income (expense)        
Current (827,229)   (358,981) (206,178)
Deferred 576,895   (50,128) (60,368)
  (250,334)   (409,109) (266,546)
Reconciliation of income tax and social contribution income (expense)

      Consolidated
  12/31/2018   12/31/2017   12/31/2016
           
Profit/(Loss) before income tax and social contribution              5,450,917                   520,338   (576,951)
Tax rate 34%   34%   34%
Income tax and social contribution at combined statutory rate            (1,853,312)                 (176,915)   196,163
Adjustment to reflect the effective rate:          
Equity in results of affiliated companies                   50,134                     42,431   22,072
Profit with differentiated rates or untaxed                 (46,006)                     37,605   (287,502)
Transfer pricing adjustment                 (74,836)                   (34,746)   (63,638)
Tax loss carryforwards without recognizing deferred taxes                 (27,683)                 (368,612)   (821,920)
Indebtdness limit                 (38,486)                   (39,378)   (35,391)
Unrecorded deferred taxes on temporary differences                 (11,964)                   541,655   643,990
Deferred Income Tax and social contribution on temporary differences                 971,972        
(Losses)/Reversal for deferred income and social contribution tax credits                 835,937                 (403,080)   44,691
Income taxes and social contribution on foreign profit                 (30,219)                   (29,964)   (35,613)
Amortization – Goodwill Metalic         31,439
Tax incentives                   36,710                     14,358   22,673
Deferred taxes on exchange variation in equity                 (43,667)        
Other permanent deductions (additions)                 (18,914)                       7,537   16,490
Income tax and social contribution in profit for the period               (250,334)                 (409,109)   (266,546)
Effective tax rate 5%   79%   -46%
Deferred income tax and social contribution

                                  Consolidated
  12/31/2016   Movement 12/31/2017   Movement   12/31/2018
    Shareholders'
Equity		   P&L   Others   Shareholders'
Equity		   P&L   Others    
                 
Deferred                                  
Income tax losses                  970,800            245,846         (79,412)               1,137,234           (177,378)              (616)                     959,240
Social contribution tax losses                  340,629              94,843         (28,588)                  406,884             (39,303)              (223)                     367,358
Temporary differences             (2,288,175)                        26,778       (390,817)           (2,344)             (2,654,558)                     21,208        793,576               839                (1,838,935)
- Provision for tax. social security, labor, civil and environmental risks                  256,936              12,963                      269,899               (5,846)            3,184                     267,237
- Provision for environmental liabilities                    95,048               (8,197)                        86,851             (19,708)                           67,143
- Asset impairment losses                    93,908               (5,475)                        88,433               (7,092)                           81,341
- Inventory impairment losses                    35,703              10,111                        45,814               (7,054)                           38,760
- (Gains)/losses on financial instruments                    (2,300)                1,388                           (912)               (2,407)                           (3,319)
- (Gains)/losses on available-for-sale financial assets                  705,929                      316,563                          417,659                   530,292       (584,856)                         363,095
- Actuarial liability (pension and healthcare plan)                  134,578                      180,834         (41,065)           (1,289)                  273,058                          (48)            3,022                         276,032
- Accrued supplies and services                  123,101             (55,385)                        67,716              27,928                           95,644
- Allowance for doubtful debts                    42,008                5,208                        47,216              14,199                           61,415
- Goodwill on merger                         815                  (207)                             608                  (608)          
- Unrealized ex change differences (1)               1,589,651                        56,493       (134,992)                   1,511,152           (500,620)                      1,010,532
- (Gain) on loss of control over Transnordestina                  (92,180)                              (92,180)                                 (92,180)
- Cash flow hedge accounting                  148,471                      (13,992)                          134,479                   355,563                             490,042
- Aquisition Fair Value SWT/CBL                (199,001)                      (21,143)          26,833                    (193,311)                   (16,683)          37,880                       (172,114)
- Deferred taxes non computed             (1,324,437)                    (566,173)           (3,255)              (115)                (212,236)             (38,359)           (2,345)                   (252,940)
- (Losses) estimated/ reversals to deferred taxes credits             (3,013,730)                        82,769       (123,056)                 (4,130,928)                 (885,069)     1,929,424                    (3,086,573)
- Business Combination             (1,072,824)              32,288                 (1,040,536)                9,724                    (1,030,812)
- Other                  190,149                        (8,573)       (107,976)              (940)                    72,660                     37,153         (62,051)                           47,762
Total                (976,746)                        26,778         (50,128)       (110,344)             (1,110,440)                     21,208        576,895                       (512,337)
                                   
Total Deferred Assets                    70,151                                63,119                                   89,394
Total Deferred Liabilities             (1,046,897)                         (1,173,559)                               (601,731)
Total Deferred                (976,746)                         (1,110,440)                               (512,337)
Deferred tax assets on tax losses and temporary differences

  Nature Description
  Tax losses In recent periods, the Company started to incur tax losses, mostly because of high financial expenses, since it holds substantially all loans and financings of CSN group and presented a taxable income in 2018.
Temporary differences Foreign exchange differences

Since 2012 the Company opted for the taxation of exchange differences on a cash basis. As the Company has operated without taxable profit it would not make sense to use this deductibility year by year (accrual basis). As a result of the cash basis tax treatment, taxes are only due, and expenses are only deductible at the time of debt settlement.

 

Losses on Usiminas shares The losses on Usiminas shares are recognized on an accrual basis, but the taxable event will occur only at the time of divestment.
Other provisions

Various accounting provisions are recognized on an accrual basis, but their taxation occurs only at the time of its realization, such as provisions for contingencies, impairment losses, environmental liabilities, etc.

 
Income tax and social contribution recognized in shareholders' equity
  Consolidated
  12/31/2018   12/31/2017
Income tax and social contribution      
Actuarial gains on defined benefit pension plan 176,700   176,658
Estimated losses for deferred income tax and social contribution credits - actuarial gains (180,048)   (180,834)
Changes in the fair value of assets measured at fair value through other comprehensive income     (530,292)
Estimated losses for deferred income tax and social contribution assets - assets measured at fair value through other comprehensive income     530,292
Exchange differences on foreign operations (325,350)   (369,017)
Cash flow hedge accounting 490,041   134,478
Estimated losses for deferred income tax and social contribution credits - cash flow hedge (490,041)   (134,478)
  (328,698)   (373,193)