Deferred income tax assets may be recognized when the Company starts to experience future sustainable taxable income during the carryforward period and it is probable that these tax benefits will be realized.
| Year ended December 31, | ||||||||||||
| 2016 | 2017 | 2017 | ||||||||||
| BRL | BRL | USD | ||||||||||
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Deductible temporary differences |
R$ | 54,305 | R$ | 52,139 | US$ | 15,761 | ||||||
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Income tax loss carry foward |
169,765 | 195,538 | 59,111 | |||||||||
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Total unrecognized deferred income tax assets |
R$ | 224,070 | R$ | 247,677 | US$ | 74,872 | ||||||
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Brazilian unrecognized income tax carryforward losses amounting to R$142,218 (US$42,992) at December 31, 2017 do not expire, however they can only offset up to 30 percent of a taxpayer’s taxable income in any given year.
Tax loss carryforwards for Argentina and Mexico expire as follows:
| Year ended December 31, | ||||||||
| 2017 | 2017 | |||||||
| Expiry date | BRL | USD | ||||||
|
2018 |
R$ | 1,178 | US$ | 356 | ||||
|
2019 |
4,056 | 1,226 | ||||||
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2020 |
5,970 | 1,805 | ||||||
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2021 |
7,128 | 2,155 | ||||||
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2022 and thereafter |
34,988 | 10,577 | ||||||
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| R$ | 53,320 | US$ | 16,119 | |||||
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