| INCOME TAXES |
15 INCOME TAXES
a) Income taxes
As of December 31, 2025 the current income tax liabilities is $ 66,765 ($31,618 as of December 31, 2024; $5,147 as of December 31, 2023).
Income tax expenses included in the consolidated statements of income for the year ended December 31, 2025, 2024 and 2023 are as follows:
| Schedule of income taxes expenses |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2025 |
|
|
2024 |
|
|
2023 |
|
| Current income tax |
|
|
(138,831 |
) |
|
|
(52,971 |
) |
|
|
(18,798 |
) |
| Deferred income tax |
|
|
7,618 |
|
|
|
(29,720 |
) |
|
|
12,372 |
|
| Total income taxes expense |
|
|
(131,213 |
) |
|
|
(82,691 |
) |
|
|
(6,426 |
) |
b) Deferred income tax assets and liabilities
Deferred tax assets and liabilities on the consolidated statements of financial position consist of:
| Schedule of Deferred tax assets and liabilities |
|
|
|
|
|
|
|
|
| Net deferred income tax assets (liabilities) are classified as follows: |
|
2025 |
|
|
2024 |
|
| |
|
|
|
|
|
|
| Deferred income tax assets |
|
|
35,418 |
|
|
|
15,218 |
|
| Deferred income tax liabilities |
|
|
(37,006 |
) |
|
|
(31,583 |
) |
| Total deferred taxes, net |
|
|
(1,588 |
) |
|
|
(16,365 |
) |
The movement in the net deferred income tax asset (liability) account was as follows:
| Schedule of deferred income tax asset |
|
|
|
|
| Balance, December 31, 2022 |
|
|
4,596 |
|
| Recorded in the statement of income (loss) |
|
|
12,372 |
|
| Recorded through other comprehensive income |
|
|
374 |
|
| Exchange differences |
|
|
596 |
|
| Balance, December 31, 2023 |
|
|
17,938 |
|
| Recorded in the statement of income (loss) |
|
|
(29,720 |
) |
| Recorded through other comprehensive income |
|
|
1,942 |
|
| Exchange differences |
|
|
(6,525 |
) |
| Balance, December 31, 2024 |
|
|
(16,365 |
) |
| Recorded in the statement of income (loss) |
|
|
7,618 |
|
| Recorded through other comprehensive income |
|
|
914 |
|
| Acquisition of Bluestone |
|
|
(1,137 |
) |
| Acquisition of MSG |
|
|
7,362 |
|
| Exchange differences |
|
|
20 |
|
| Balance, December 31, 2025 |
|
|
(1,588 |
) |
The deferred income tax and social contribution are calculated on tax loss carryforwards and the temporary differences between the tax bases of assets and liabilities and their carrying amounts, as follows:
| Schedule of deferred income tax |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
2025 |
|
|
2024 |
|
| Provision for mine closure and restoration |
|
|
15,597 |
|
|
|
7,057 |
|
| Tax losses carried forward |
|
|
1,034 |
|
|
|
5,831 |
|
| Fair value on acquisitions |
|
|
1,391 |
|
|
|
5,689 |
|
| Non-deductible provisions |
|
|
32,110 |
|
|
|
11,235 |
|
| Non-deductible exchange changes |
|
|
7,170 |
|
|
|
(442 |
) |
| Deferred taxes over non-monetary items |
|
|
(26,771 |
) |
|
|
(31,031 |
) |
| Depreciation |
|
|
(24,113 |
) |
|
|
(9,198 |
) |
| Advance payments |
|
|
(8,612 |
) |
|
|
(3,488 |
) |
| Others |
|
|
606 |
|
|
|
(2,018 |
) |
| Total of deferred tax assets and liabilities |
|
|
(1,588 |
) |
|
|
(16,365 |
) |
c) Effective tax rate
| Schedule of effective tax rate |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2025 |
|
|
2024 |
|
|
2023 |
|
| Income before Income taxes |
|
|
51,873 |
|
|
|
52,420 |
|
|
|
38,306 |
|
| Income taxes at statutory rate applicable to the parent Company (0%) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Adjustments for calculating the effective rate |
|
|
|
|
|
|
|
|
|
|
|
|
| Tax calculated at the domestic rates |
|
|
(137,512 |
) |
|
|
(49,094 |
) |
|
|
(20,480 |
) |
| Non-deductible expenses/non-taxable (income) |
|
|
7,931 |
|
|
|
(1,585 |
) |
|
|
5,918 |
|
| Deferred tax assets from losses carried forward |
|
|
12,887 |
|
|
|
1,323 |
|
|
|
10,251 |
|
| Unrecognized deferred tax asset (losses carried forward) |
|
|
(4,882 |
) |
|
|
(10,043 |
) |
|
|
(3,387 |
) |
| Tax exemptions (a) |
|
|
9,223 |
|
|
|
1,261 |
|
|
|
910 |
|
| Withholding taxes on distribution |
|
|
(7,560 |
) |
|
|
(2,944 |
) |
|
|
- |
|
| Tax over translation adjustments |
|
|
(24,214 |
) |
|
|
2,633 |
|
|
|
- |
|
| Deferred taxes over non-monetary items |
|
|
14,208 |
|
|
|
(19,309 |
) |
|
|
1,904 |
|
| Others |
|
|
(1,294 |
) |
|
|
(4,933 |
) |
|
|
(1,542 |
) |
| Income tax expense |
|
|
(131,213 |
) |
|
|
(82,691 |
) |
|
|
(6,426 |
) |
| Effective tax rate |
|
|
(253.0 |
%) |
|
|
(158 |
%) |
|
|
16.78 |
% |
(a) As of December 31, 2025, the Company recognized a total of USD 9,223 in tax exemptions, of which USD 8,221 relates to the profit from operations incentive and USD 1,002 to the Workers Food Program (PAT), in accordance with applicable legislation.
|