INCOME TAX PAYABLE AND DEFERRED INCOME TAX ASSETS/LIABILITIES (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| INCOME TAX PAYABLE AND DEFERRED INCOME TAX ASSETS/LIABILITIES |
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| Schedule of income tax liabilities |
| | | | | | | As of December 31, | | | 2025 | | 2024 | At the beginning of the year | | (5,999) | | (4,474) | Current income tax expense | | (196,068) | | (14,344) | Acquisitions through business combination (*) | | — | | (1,096) | Payments | | 15,012 | | 9,703 | RECPAM and currency translation adjustments | | 40,966 | | 3,344 | Income tax withholdings | | 79,348 | | 868 | At the end of the year | | (66,741) | | (5,999) |
(*) | In 2024 corresponds to the acquisitions of TSMA and Manda. |
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| Schedule of deferred Income tax assets/(liabilities), net |
| | | | | | | December 31, | | | 2025 | | 2024 | Tax carryforward | | (33,716) | | (54,672) | Allowance for doubtful accounts | | (96,729) | | (40,854) | Legal Claims and contingent liabilities | | (183,354) | | (11,763) | PP&E, intangible assets and right of use assets | | 1,451,360 | | 1,704,559 | Cash dividends from foreign companies | | 40,346 | | 25,976 | Income tax inflation adjustment effect | | — | | 192,431 | Other deferred tax liabilities (assets), net | | (45,479) | | (2,099) | Total deferred tax liabilities, net | | 1,132,428 | | 1,813,578 | Actions for recourse tax receivable | | (888) | | (1,168) | Total deferred tax liability, net | | 1,131,540 | | 1,812,410 | | | | | | Net deferred tax assets | | 48,434 | | 43,398 | Net deferred tax liabilities | | (1,179,974) | | (1,855,808) |
Movements in Deferred Income tax assets/(liabilities), net are as follows: | | | | | | | December 31, | | | 2025 | | 2024 | At the beginning of the year | | (1,812,410) | | (1,281,435) | Increases in Deferred tax | | 242,500 | | (523,893) | Currency translation adjustments | | 1,776 | | (7,979) | Other comprehensive income | | (1,283) | | 2,416 | Acquisitions through business combination (1) | | 437,877 | | (1,519) | At the end of the year | | (1,131,540) | | (1,812,410) |
(1) | In 2025 corresponds to the deferred tax asset arising from the acquisition of TMA (see Note 29). In 2024 corresponds to the deferred tax liability arising from the acquisitions of TSMA and Manda. |
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| Schedule of Income tax expense differed from the amounts computed by applying the statutory income tax rate of each company to pre-tax income |
| | | | | | | | | | Years ended December 31, | | | | 2025 | | 2024 | | 2023 | | | | | Profit (loss) | | Income (loss) before income tax expense | | (191,736) | | 1,897,467 | | (1,684,256) | | Non-taxable items – Losses from associates and joint ventures | | 3,742 | | 15,094 | | 5,408 | | Non-taxable items – Other | | (43,305) | | (2,474) | | 3,722 | | Restatement in current currency of Equity, goodwill and other | | 931,163 | | 1,344,272 | | 2,911,454 | | Subtotal | | 699,864 | | 3,254,359 | | 1,236,328 | | Effective income tax rate | | 32.40 | % | 34.31 | % | 33.65 | % | Income tax expense at statutory tax rate of each company | | (226,770) | | (1,116,688) | | (415,974) | | Deferred tax liability restatement in current currency and other | | 750,460 | | 1,761,242 | | 2,648,155 | | Income tax inflation adjustment | | (449,199) | | (1,174,749) | | (1,231,124) | | Unrecoverable tax loss carryforwards | | (7,459) | | — | | — | | Income tax on cash dividends of foreign companies | | (20,600) | | (8,042) | | (32,067) | | Income tax benefit (expense) (1) (2) | | 46,432 | | (538,237) | | 968,990 | | | | | | | | | | Current tax | | (196,068) | | (14,344) | | (8,305) | | Deferred tax | | 242,500 | | (523,893) | | 977,295 | | Income tax benefit (expense) | | 46,432 | | (538,237) | | 968,990 | |
| (1) | In 2025, 2024 and 2023, includes $455 million, $3,566 million and $(1,635) million, respectively, corresponding to the adjustments made in the tax returns for 2024, 2023 and 2022, respectively. In 2025 and 2024, includes $43,338 million and $67,074 million, respectively, corresponding to the adjustments made to the income tax provision for fiscal years 2025 and 2024, which include, among others, the effects related to the full application of the inflation adjustment mechanisms for tax purposes detailed in “Income tax – Inflation adjustment for tax purposes – Telecom Argentina.” |
| (2) | In 2024 includes $282 million related to a creditable withholding originated in the subsidiary MFH, which is not an income tax liable entity. |
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