| INCOME TAX AND SOCIAL CONTRIBUTION |
| 37) | | INCOME TAX AND SOCIAL CONTRIBUTION |
| a) | Calculation of income tax and social contribution charges |
| Schedule of income tax and social contribution charges |
|
|
|
| |
R$ thousands |
| Year ended December 31 |
| 2025 |
2024 |
2023 |
| Income before income taxes |
21,024,584 |
16,900,514 |
10,208,351 |
| Total burden of income tax (25%) and social contribution (20%) at the current rates |
(9,461,063) |
(7,605,231) |
(4,593,758) |
| Effect of additions and exclusions in the tax calculation: |
|
|
|
| Share of profit of associates and joint ventures |
973,182 |
689,213 |
945,756 |
| Non-taxable income net of non-deductible expenses (1) |
3,046,366 |
1,026,745 |
1,152,929 |
| Interest on shareholders' equity |
6,524,673 |
5,077,509 |
5,089,859 |
| Other amounts (2) |
1,816,894 |
1,453,403 |
1,699,628 |
| Income tax and social contribution for the period |
2,900,052 |
641,639 |
4,294,414 |
| (1) | | Amounts related to enrollment in the Integral Transaction Program (PTI) |
| (2) | | Primarily, includes: (i) effect of tax rates in foreign jurisdictions and subsidiaries with
different applicable tax rates except banks, insurance companies and non-financial companies; and (ii) the incentivized deductions. |
| b) | Composition of income tax and social contribution in the consolidated
statement of income |
| Schedule of income tax and social contribution consolidated statement of
income |
|
|
|
| |
R$ thousands |
| Year ended December 31 |
| 2025 |
2024 |
2023 |
| Current taxes: |
|
|
|
| Income tax and social contribution expense |
(7,061,716) |
(7,414,511) |
(6,622,719) |
| Deferred taxes: |
|
|
|
| Constitution/realization in the period on temporary additions and exclusions |
10,034,914 |
8,194,223 |
11,152,253 |
| Use of opening balances of: |
|
|
|
| Social contribution loss |
(454,315) |
(168,131) |
(148,548) |
| Income tax loss |
(351,064) |
(202,260) |
(176,932) |
| Constitution: |
|
|
|
| Social contribution loss |
209,295 |
69,624 |
34,413 |
| Income tax loss |
522,938 |
162,694 |
55,947 |
| Total deferred tax benefit |
9,961,768 |
8,056,150 |
10,917,133 |
| Income tax benefit |
2,900,052 |
641,639 |
4,294,414 |
| c) | Deferred income tax and social contribution presented in the
consolidated statement of financial position |
| Schedule of income tax and social contribution consolidated statement of financial position |
|
|
|
|
| |
R$ thousands |
| Balance on December 31, 2024 |
Amount recorded |
Amount realized |
Balance on December 31, 2025 |
| Expected credit losses associated with credit risk |
71,073,481 |
27,594,707 |
(16,948,286) |
81,719,902 |
| Civil provisions |
3,427,730 |
463,454 |
(903,478) |
2,987,706 |
| Tax provisions |
3,428,498 |
538,174 |
(1,252,195) |
2,714,477 |
| Labor provisions |
1,165,970 |
961,001 |
(183,121) |
1,943,850 |
| Non-current assets held for sale and discontinued operations |
699,334 |
214,299 |
(273,408) |
640,225 |
| Adjustment to fair value of financial assets measured at fair value through profit or loss and derivatives |
15,813 |
21,773 |
(3,481) |
34,105 |
| Other |
6,276,457 |
4,634,250 |
(4,502,865) |
6,407,842 |
| Total deductible taxes on temporary differences |
86,087,283 |
34,427,658 |
(24,066,834) |
96,448,107 |
| Income tax and social contribution losses in Brazil and overseas |
18,755,350 |
732,233 |
(805,379) |
18,682,204 |
| Subtotal |
104,842,633 |
35,159,891 |
(24,872,213) |
115,130,311 |
| Adjustment to fair value of securities measured at fair value through other comprehensive income |
2,356,352 |
225,640 |
(989,610) |
1,592,382 |
| Total deferred tax assets (1) |
107,198,985 |
35,385,531 |
(25,861,823) |
116,722,693 |
| Deferred tax liabilities (1) |
7,055,108 |
1,100,043 |
(774,133) |
7,381,018 |
| Net deferred taxes (1) |
100,143,877 |
34,285,488 |
(25,087,690) |
109,341,675 |
| |
R$ thousands |
| Balance on December 31, 2023 |
Amount recorded |
Amount realized |
Balance on December 31, 2024 |
| Expected credit losses associated with credit risk |
59,099,785 |
16,581,669 |
(8,155,178) |
67,526,276 |
| Civil provisions |
3,778,419 |
355,631 |
(706,320) |
3,427,730 |
| Tax provisions |
3,241,356 |
290,403 |
(103,261) |
3,428,498 |
| Labor provisions |
2,068,011 |
278,344 |
(1,180,385) |
1,165,970 |
| Impairment of securities and investments |
3,249,695 |
1,586,509 |
(1,288,999) |
3,547,205 |
| Non-current assets held for sale and discontinued operations |
735,678 |
193,066 |
(229,410) |
699,334 |
| Adjustment to fair value of securities |
270,017 |
3,592 |
(257,796) |
15,813 |
| Other |
5,760,081 |
3,305,650 |
(2,789,274) |
6,276,457 |
| Total deductible taxes on temporary differences |
78,203,042 |
22,594,864 |
(14,710,623) |
86,087,283 |
| Income tax and social contribution losses in Brazil and overseas |
18,893,423 |
232,318 |
(370,391) |
18,755,350 |
| Subtotal |
97,096,465 |
22,827,182 |
(15,081,014) |
104,842,633 |
| Adjustment to fair value of financial assets measured at fair value through profit or loss and derivatives |
1,180,023 |
4,810,633 |
(3,634,304) |
2,356,352 |
| Total deferred tax assets (1) |
98,276,488 |
27,637,815 |
(18,715,318) |
107,198,985 |
| Deferred tax liabilities (1) |
7,365,091 |
663,702 |
(973,685) |
7,055,108 |
| Net deferred taxes (1) |
90,911,397 |
26,974,113 |
(17,741,633) |
100,143,877 |
| (1) | | Deferred income and social contribution tax assets and liabilities are offset in the statement
of financial position within each taxable entity, which was a total of R$(5,485,087) thousand in 2025 (R$(5,548,220) thousand in 2024). |
| d) | Expected realization of deferred tax assets on temporary differences
and carry-forward tax losses |
| Schedule
of deferred tax assets on temporary differences and carry-forward tax losses |
|
|
|
|
|
|
|
| |
On December 31, 2025 - R$ thousands |
|
|
| Temporary differences |
Carry-forward tax losses |
Total |
|
|
| Income tax |
Social contribution |
Income tax |
Social contribution |
|
|
| |
|
| 2026 |
9,621,727 |
7,519,719 |
151,279 |
43,152 |
17,335,877 |
|
|
| 2027 |
8,627,534 |
6,826,894 |
165,918 |
60,867 |
15,681,213 |
|
|
| 2028 |
7,286,429 |
5,768,848 |
281,828 |
156,461 |
13,493,566 |
|
|
| 2029 |
6,583,736 |
5,216,181 |
603,812 |
407,804 |
12,811,533 |
|
|
| 2030 |
5,720,605 |
4,414,712 |
935,804 |
679,480 |
11,750,601 |
|
|
| 2031 |
3,730,116 |
2,949,911 |
1,539,679 |
1,150,859 |
9,370,565 |
|
|
| 2032 |
3,281,096 |
2,587,352 |
1,772,660 |
1,396,868 |
9,037,976 |
|
|
| 2033 |
3,066,360 |
2,422,614 |
2,149,245 |
1,709,662 |
9,347,881 |
|
|
| 2034 |
3,156,306 |
2,443,013 |
2,302,591 |
1,834,036 |
9,735,946 |
|
|
| 2035 |
2,925,831 |
2,299,123 |
419,912 |
920,287 |
6,565,153 |
|
|
| Total |
53,999,740 |
42,448,367 |
10,322,728 |
8,359,476 |
115,130,311 |
|
|
The projection of realization of tax credits
is an estimate and is not directly related to the expectation of accounting profits and contemplates the rules for deductibility of credit
losses, established by Laws No. 14,467/22 and No. 15,078/24.
| e) | Deferred tax liabilities |
| Schedule of deferred tax liabilities |
|
|
|
|
| |
R$ thousands |
| Balance on December 31, 2024 |
Amount recorded |
Amount realized |
Balance on December 31, 2025 |
| Fair value adjustment to securities and derivative financial instruments |
443,139 |
258,277 |
(227,301) |
474,115 |
| Difference in depreciation |
726,203 |
329,534 |
- |
1,055,737 |
| Monetary adjustment of judicial deposits |
2,008,528 |
331,827 |
(118,186) |
2,222,169 |
| Other |
3,877,238 |
180,405 |
(428,646) |
3,628,997 |
| Total deferred tax liabilities |
7,055,108 |
1,100,043 |
(774,133) |
7,381,018 |
| |
R$ thousands |
| Balance on December 31, 2023 |
Amount recorded |
Amount realized |
Balance on December 31, 2024 |
| Fair value adjustment to securities and derivative financial instruments |
1,150,588 |
60,628 |
(768,077) |
443,139 |
| Difference in depreciation |
616,829 |
190,634 |
(81,260) |
726,203 |
| Monetary adjustment of judicial deposits |
1,787,400 |
251,639 |
(30,511) |
2,008,528 |
| Other |
3,810,274 |
160,801 |
(93,837) |
3,877,238 |
| Total deferred tax liabilities |
7,365,091 |
663,702 |
(973,685) |
7,055,108 |
| f) | Income tax and social contribution on adjustments recognized directly in other comprehensive
income |
| Schedule
of income tax and social contribution in other comprehensive income |
|
|
|
|
|
|
| |
R$ thousands |
| On December 31, 2025 |
On December 31, 2024 |
| Before tax |
Tax (expense)/ benefit |
Net of tax |
Before tax |
Tax (expense)/ benefit |
Net of tax |
| Debt instruments measured at fair value through other comprehensive income |
674,736 |
(293,740) |
380,996 |
(10,616,772) |
4,351,914 |
(6,264,858) |
| Exchange differences on translations of foreign operations |
(313,985) |
141,293 |
(172,692) |
759,955 |
(341,980) |
417,975 |
| Insurance contracts |
1,498,415 |
(597,259) |
901,156 |
4,271,216 |
(1,922,047) |
2,349,169 |
| Other |
(99,585) |
44,813 |
(54,772) |
158,720 |
(71,424) |
87,296 |
| Total |
1,759,581 |
(704,893) |
1,054,688 |
(5,426,881) |
2,016,463 |
(3,410,418) |
|