7) DEFERRED TAXES AND TAXES RECOVERABLE
a) Taxes recoverable
|
|
|
12/31/17 |
|
12/31/16 |
|
State VAT (ICMS) (1) |
|
2,450,856 |
|
2,329,159 |
|
Income and social contribution taxes recoverable (2) |
|
505,535 |
|
830,549 |
|
Withholding taxes and contributions (3) |
|
238,355 |
|
157,371 |
|
PIS and COFINS |
|
85,098 |
|
148,759 |
|
Fistel, INSS, ISS and other taxes |
|
27,431 |
|
38,236 |
|
Total |
|
3,307,275 |
|
3,504,074 |
|
|
|
|
|
|
|
Current |
|
2,563,990 |
|
3,027,230 |
|
Noncurrent |
|
743,285 |
|
476,844 |
|
(1) |
This includes credits of ICMS arising from the acquisition of property and equipment (subject to offsetting in 48 months); requests for refund of ICMS, which was paid under invoices that were cancelled subsequently; for the rendering of services; tax substitution; and tax rate difference; among others. Noncurrent consolidated amounts include credits arising from the acquisition of property and equipment of R$423,588 and R$370,770 on December 31, 2017 and 2016, respectively. |
|
(2) |
This refers to prepayments of income and social contribution taxes, which will be offset against federal taxes to be determined in the future. |
|
(3) |
This refers to credits on withholding income tax (IRRF) on short-term investments, interest on equity and others, which are used as deduction in operations for the period and social contribution tax withheld at source on services provided to public agencies. |
b) Deferred taxes
Deferred income and social contribution tax assets are computed considering expected generation of taxable profit, which were based on a technical feasibility study, approved by the Board of Directors.
Significant components of deferred income and social contribution taxes are as follows:
|
|
|
Balances at |
|
|
|
Comprehensive |
|
|
|
Balances at |
|
|
|
Comprehensive |
|
Business |
|
|
|
Balances at |
|
|
|
12/31/15 |
|
Income statement |
|
income |
|
Other |
|
12/31/16 |
|
Income statement |
|
income |
|
(Note 1 c.1) |
|
Other |
|
12/31/17 |
|
Deferred tax assets (liabilities) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income and social contribution taxes on tax losses (1) |
|
26,519 |
|
(12,448) |
|
— |
|
— |
|
14,071 |
|
710,411 |
|
— |
|
69,451 |
|
— |
|
793,933 |
|
Income and social contribution taxes on temporary differences (2) |
|
685,071 |
|
(748,969) |
|
78,840 |
|
(1,516) |
|
13,426 |
|
(1,251,816) |
|
58,192 |
|
48,434 |
|
(86) |
|
(1,131,850) |
|
Provisions for legal, labor, tax civil and regulatory contingencies |
|
1,954,236 |
|
276,100 |
|
— |
|
— |
|
2,230,336 |
|
68,399 |
|
— |
|
— |
|
— |
|
2,298,735 |
|
Trade accounts payable and other provisions |
|
687,124 |
|
(10,001) |
|
— |
|
— |
|
677,123 |
|
(25,706) |
|
— |
|
— |
|
— |
|
651,417 |
|
Estimated losses on impairment of accounts receivable |
|
447,018 |
|
(88,213) |
|
— |
|
— |
|
358,805 |
|
76,155 |
|
— |
|
— |
|
— |
|
434,960 |
|
Customer portfolio and trademarks |
|
343,107 |
|
(30,015) |
|
— |
|
— |
|
313,092 |
|
(58,674) |
|
— |
|
— |
|
— |
|
254,418 |
|
Estimated losses from modems and other P&E items |
|
294,945 |
|
(10,268) |
|
— |
|
— |
|
284,677 |
|
(83,736) |
|
— |
|
— |
|
— |
|
200,941 |
|
Pension plans and other post-employment benefits |
|
26,285 |
|
1,633 |
|
80,501 |
|
— |
|
108,419 |
|
8,630 |
|
57,485 |
|
— |
|
— |
|
174,534 |
|
Profit sharing |
|
106,198 |
|
19,058 |
|
— |
|
— |
|
125,256 |
|
(15,210) |
|
— |
|
— |
|
— |
|
110,046 |
|
Provision for loyalty program |
|
32,604 |
|
(13,492) |
|
— |
|
— |
|
19,112 |
|
(1,991) |
|
— |
|
— |
|
— |
|
17,121 |
|
Accelerated accounting depreciation |
|
10,865 |
|
13,168 |
|
— |
|
— |
|
24,033 |
|
(15,773) |
|
— |
|
— |
|
— |
|
8,260 |
|
Estimated impairment losses on inventories |
|
10,707 |
|
1,392 |
|
— |
|
— |
|
12,099 |
|
(347) |
|
— |
|
— |
|
— |
|
11,752 |
|
Derivative transactions |
|
59,408 |
|
2,358 |
|
(1,633) |
|
— |
|
60,133 |
|
(35,084) |
|
822 |
|
— |
|
— |
|
25,871 |
|
Licenses |
|
(1,204,226) |
|
(216,330) |
|
— |
|
— |
|
(1,420,556) |
|
(216,330) |
|
— |
|
— |
|
— |
|
(1,636,886) |
|
Effects of goodwill generated in the acquisition of Vivo Part. |
|
(809,600) |
|
(54,720) |
|
— |
|
— |
|
(864,320) |
|
(5,461) |
|
— |
|
— |
|
— |
|
(869,781) |
|
Goodwill from Spanish and Navytree |
|
(337,535) |
|
— |
|
— |
|
— |
|
(337,535) |
|
— |
|
— |
|
— |
|
— |
|
(337,535) |
|
Goodwill from Vivo Part. |
|
(837,918) |
|
(167,202) |
|
— |
|
— |
|
(1,005,120) |
|
(167,203) |
|
— |
|
— |
|
— |
|
(1,172,323) |
|
Goodwill from GVTPart. |
|
— |
|
(522,228) |
|
— |
|
— |
|
(522,228) |
|
(696,305) |
|
— |
|
— |
|
— |
|
(1,218,533) |
|
Technological Innovation Law |
|
(193,146) |
|
52,206 |
|
— |
|
— |
|
(140,940) |
|
43,407 |
|
— |
|
— |
|
— |
|
(97,533) |
|
Income and social contribution taxes on other temporary differences (3) |
|
94,999 |
|
(2,415) |
|
(28) |
|
(1,516) |
|
91,040 |
|
(126,587) |
|
(115) |
|
48,434 |
|
(86) |
|
12,686 |
|
Total deferred tax assets (liabilities), noncurrent |
|
711,590 |
|
(761,417) |
|
78,840 |
|
(1,516) |
|
27,497 |
|
(541,405) |
|
58,192 |
|
117,885 |
|
(86) |
|
(337,917) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax assets |
|
4,153,054 |
|
|
|
|
|
|
|
4,541,952 |
|
|
|
|
|
|
|
|
|
5,288,176 |
|
Deferred tax liabilities |
|
(3,441,464) |
|
|
|
|
|
|
|
(4,514,455) |
|
|
|
|
|
|
|
|
|
(5,626,093) |
|
Deferred tax assets (liabilities), net |
|
711,590 |
|
|
|
|
|
|
|
27,497 |
|
|
|
|
|
|
|
|
|
(337,917) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Represented in the balance sheet as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax assets |
|
711,590 |
|
|
|
|
|
|
|
27,497 |
|
|
|
|
|
|
|
|
|
371,408 |
|
Deferred tax liabilities |
|
— |
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
(709,325) |
|
(1) |
This refers to the amounts recorded which, in accordance with Brazilian tax legislation, may be offset to the limit of 30% of the tax bases computed for the following years, with no expiry date. In 2017, additions of R$779,862 were recorded in the Consolidated , composed of R$587,374 of the Company and R$194,488 of Terra Networks and POP. |
|
(2) |
This refers to amounts that will be realized upon payment of provisions, effective impairment losses for trade accounts receivable, or realization of inventories, as well as upon reversal of other provisions. |
|
(3) |
These refer to deferred taxes arising from other temporary differences, such as deferred income, renewal of licenses burden, subsidy on the sale of mobile phones, among others. |
At December 31, 2017, deferred tax credits (income and social contribution tax losses) were not recognized in indirect subsidiaries' (Innoweb and TGLog) accounting records, in the amount of R$11,938 (R$2,993 at December 31, 2016), as it is not probable that future taxable profits shall be available for these subsidiaries to benefit from such tax credits.
Expected realization of deferred taxes, net, noncurrent.
The amounts are based on projections subject to change in the future.
|
Year |
|
|
|
2018 |
|
1,904,953 |
|
2019 |
|
685,775 |
|
2020 |
|
374,379 |
|
2021 |
|
442,867 |
|
2022 |
|
704,303 |
|
2023 onwards |
|
(4,450,194) |
|
Total |
|
(337,917) |