Management Report 2020
-
SLC
Agrícola
12/31/2019
12/31/2020
Management Report 2020
The Company and its subsidiaries, based on the expectation of generating future
taxable income, based on a technical study approved by management, recognized
tax credits on tax losses, negative social contribution base and temporary differ-
ences, which have no statute of limitations. The book value of deferred charges is
reviewed annually by the Company and the resulting adjustments have not been
significant in relation to management's initial forecast. The technical study con-
siders the investments and incentives that farms may be entitled to.
Based on this technical study to generate future taxable income, the Company
estimates to recover these tax credits in the following years:
Parent Company
12/31/2020
Consolidated
Income before tax on profit
Income and social contribution taxes at the
nominal rate from 25% to 9%, respectively
Adjustments for calculation of effective rate
Equity income
Permanent additions
Interest on own capital
Other
Value recorded in the income
Parent Company
12/31/2020
12/31/2019
(151,434)
IRPJ
CSLL IRPJ CSLL
605,735 605,735 386,937 386,937
(54,516) (96,734) (34,824)
44,350
15,966 43,810
15,771
(597)
138 (4,622)
(1,333)
9,279
3,341
12,771
3,641
2,325
184
(85,631) (31,430)
(55,221)
(20,202)
Total income and social contribution taxes
(117,061)
(75,423)
12/31/2019
Deferred taxes
(37,756)
(16,109)
2020
2021
110,660
52,872
9,859
63,328
Current taxes
(79,305)
(59,314)
140,780
18,193
Effective rate
19.33%
19.49%
2022
4,441
901
6,246
9,829
2023
3,358
400
11,358
9,110
2024
833
8,755
7,962
2025
16,269
19,766
3,690
2026
3,351
135,561
64,032
186,905
115,463
Consolidated
12/31/2020
12/31/2019
Estimates of tax credit recovery were based on projections of taxable income tak-
ing into consideration various financial and business assumptions. Consequently,
these estimates are subject to the uncertainties inherent in such forecasts not
being realized in the future.
Reconciliation of tax expense with official rates
Income and social contribution taxes, calculated based on the nominal rates of
these taxes, are reconciled to the amount recorded as Income and social contri-
bution taxes expenses as follows:
Income before tax on profit
Income and social contribution taxes at the
nominal rate from 25% to 9%, respectively
Adjustments for calculation of effective rate
Permanent addtions and exclusions
Interest on own capital
deemed profit system
IFRS 16 effects
Value recorded in the income
IRPJ
689,179
(172,295)
CSLL
IRPJ CSLL
689,179 414,662 414,662
(62,026) (103,666) (37,320)
Tax incentives of subsidiaries
(7,430)
9,279
3,355
(2,313) (4,746) (1,356)
3,341
15
Income and social contribution taxes in
40,859
14,527
2,169
27,365
85
9,772
companies taxed by the
1,637
589
13,101
4,716
Elimination Unrealized profit
(15,825)
9,966
(5,697)
3,787
(7,550)
(2,718)
542
(15)
(130,454)
(47,777)
(72,785)
(26,836)
Total income and social contribution taxes
(178,231)
(99,621)
Deferred taxes
(66,839)
(8,765)
Current taxes
Effective rate
(111,392)
25.86%
(90,856)
24.02%
119View entire presentation