Current Tax and Deferred Taxes

12 Months Ended

Dec. 31, 2024

Current Tax and Deferred Taxes [Abstract]

16.

Current tax and deferred taxes:

(a)

Current Tax:

The Bank and its subsidiaries at the end of each year, have constituted a First Category Income Tax Provision, which was determined based on current tax regulations, and has been reflected in the Statement of Financial Position net of taxes to be recovered or payable, as applicable, as of December 31, 2024 and 2023, according to the following detail:

	2024			2023
	MCh$			MCh$

Income taxes		(333,719	)		(298,877	)
Less:
Monthly prepaid taxes		483,615			429,554
Credit for training expenses		1,820			2,300
Other		8,021			7,409
Total tax (receivable) payable, net		159,737			140,386

Tax Rate		27.00	%		27.00	%

	2024			2023
	MCh$			MCh$

Current tax assets		159,869			141,194
Current tax liabilities		(132	)		(808	)
Total tax receivable (payable), net		159,737			140,386

(b)

Income Tax:

The Bank’s tax expense recorded for the years ended December 31, 2024, 2023 and 2022 is detailed as follows:

	2024			2023		2022
	MCh$			MCh$		MCh$
Income tax expense:
Current year taxes		339,604			268,318		369,711
Tax from previous period		(5,343	)		620		2,931
Subtotal		334,261			268,938		372,642
(Credit) charge for deferred taxes:
Origin and reversal of temporary differences		(1,482	)		44,545		(91,001	)
Subtotal		(1,482	)		44,545		(91,001	)
Others		822			8,631		7,568
Net charge to income for income taxes		333,601			322,114		289,209

(c)

Reconciliation of effective tax rate:

The following table reconciles the income tax rate to the effective rate applied to determine the Bank’s income tax expense as of December 31, 2024, 2023 and 2022:

	2024						2023						2022
	Tax rate %			MCh$			Tax rate %			MCh$			Tax rate %			MCh$
Income tax calculated on net income before tax		27.00			427,161			27.00			457,958			27.00			468,453
Additions or deductions ^(*)		(5.92	)		(93,726	)		(8.04	)		(136,285	)		(10.93	)		(189,722	)
Other		0.01			166			0.03			441			0.60			10,478
Effective rate and income tax expense		21.09			333,601			18.99			322,114			16.67			289,209

(*)	The deductions of the tax rate for 2024, 2023 and 2022 mainly relate to permanent differences between tax and financial accounting rules.

(d)

Effect of deferred taxes on income and equity:

The effects of deferred taxes on assets, liabilities and income accounts are detailed as follows:

	Balance as of		Effect						Balance as of		Effect						Balance as of
	December 31,								December 31,								December 31,
	2022		Income			OCI			2023		Income			OCI			2024
	MCh$		MCh$			MCh$			MCh$		MCh$			MCh$			MCh$
Debit differences:
Allowances for loan losses and provision for contingent loans		213,784		(52,432	)		—			161,352		184			—			161,536
Personnel provision		20,228		4,176			—			24,404		232			—			24,636
Staff vacations provisions		11,139		886			—			12,025		(463	)		—			11,562
Accrued interest adjustments from impaired loans		10,305		4,632			—			14,937		1,597			—			16,534
Staff severance indemnities provision		1,368		(136	)		20			1,252		(217	)		(31	)		1,004
Provisions of credit card expenses		9,146		711			—			9,857		1,111			—			10,968
Provisions of accrued expenses		11,829		(1,092	)		—			10,737		(506	)		—			10,231
Adjustment for valuation of investments and equity instruments at fair value through OCI		3,533		—			(3,256	)		277		—			198			475
Leasing		89,821		13,531			—			103,352		7,591			—			110,943
Incomes received in advance		9,012		(3,863	)		—			5,149		(1,035	)		—			4,114
Exchange rate difference		—		—			—			—		—			—			—
Property and equipment valuation difference		403		2,473			—			2,876		3,924			—			6,800
Other adjustments		32,382		(1,060	)		—			31,322		(10,174	)		—			21,148
Total Debit Differences		412,950		(32,174	)		(3,236	)		377,540		2,244			167			379,951

Credit differences:
Intangible		16,965		7,745			—			24,710		5,913			—			30,623
Property and equipment valuation difference		—		—			—			—		—			—			—
Transitory assets		7,953		921			—			8,874		852			—			9,726
Loans accrued to effective rate		2,441		43			—			2,484		(151	)		—			2,333
Prepaid expenses		2,688		8,197			—			10,885		(4,485	)		—			6,400
Exchange rate difference		3,406		(1,770	)		—			1,636		(835	)		—			801
Activated bond placement expense		5,810		(553	)		—			5,257		(362	)		—			4,895
Other adjustments		5,501		(2,212	)		(1	)		3,288		(170	)		—			3,118
Total Credit Differences		44,764		12,371			(1	)		57,134		762			—			57,896
Total Debit (Credit), net		368,186		(44,545	)		(3,235	)		320,406		1,482			167			322,055

Reconciliation to Statement of Financial Position

	2024			2023
	MCh$			MCh$

Deferred tax assets		322,221			320,406
Deferred tax liabilities		(166	)		—
Total deferred taxes		322,055			320,406