Schedule of reconciliation of income tax and social contribution income (expense)

The reconciliation of income and social contribution expenses and income of the consolidated and the product of the current tax rate on income before income tax and social contribution are shown below:

			Consolidado
	12/31/2021	12/31/2020	12/31/2019
Profit/(Loss) before income tax and social contribution	18,595,778	4,918,126	1,410,733
Tax rate	34%	34%	34%
Income tax and social contribution at combined statutory rate	(6,322,565)	(1,672,163)	(479,649)
Adjustment to reflect the effective rate:
Equity in results of affiliated companies	71,833	28,391	46,737
Difference Tax Rate in companies abroad	(437,567)	(519,840)	(236,404)
Transfer price adjustment	(20,925)	(15,645)	(18,494)
Tax loss carryforwards without recognizing deferred taxes	(9,495)	(27,758)	(21,095)
Indebtdness limit	(6,260)	(25,087)	(20,393)
Unrecorded deferred taxes on temporary differences	3,181	5,142	(2,835)
Reversal for deferred income tax and social contribution credit	1,033,566	1,540,087	1,530,185
Income taxes and social contribution on foreign profit	(34,896)	(13,011)	(14,424)
Tax incentives	273,040	64,818	39,042
Interest on equity	185,325	17,177	22,107
Other permanent exclusions (additions) ⁽ⁱ⁾	264,606	(7,619)	(10,999)
Income tax and social contribution in net income for the year	(5,000,157)	(625,508)	833,778
Effective tax rate	27%	13%	-59%

(i)

In September 2021 the Company recognized a credit for the unconstitutionality of the incidence of IRPJ and CSLL on amounts referring to the SELIC rate received due to the repetition of undue tax payment (see note 9).

Schedule of estimated recovery of deferred tax assets

The estimated recovery of deferred tax assets of IRPJ and CSLL are netted when referring to a single jurisdiction as shown in the table below:

		Consolidated
2022		2,331,239
2023		1,766,672
2024		702,525
2025		709,246
2026		429,565
Deferred asset		5,939,247
Deferred liabilities - Parent Company		(867,155)
Net deferred asset		5,072,092
Deferred liabilities - subsidiaries		(503,081)
Net deferred asset		4,569,011

Schedule of deferred tax assets on tax losses and temporary differences

Deferred income tax / social contribution on tax losses and temporary differences refers mainly to the following items:

	Nature	Brief description
	Tax losses	The Company incurred in tax losses in previous years as a result of financial expenses on its indebtedness, since it substantially holds all the loans and financing of the CSN Group. The Company reported taxable income in 2021 and in some quarters of 2020.
Differences Temporary	Foreign exchange variation expenses	Since 2012, the Company has opted for taxing exchange rate variations on a cash basis. As a result, taxes are due and expenses are deductible when the underlying asset or liability is settled.
Differences Temporary	Other provisions	Other provisions are recognized on an accrual basis and their taxation occurs only at the time of their realization, such as: provision for contingencies, loss for impairment, provision for environmental liabilities, etc.