| Schedule of Taxes Payable |
| | |
December 31,
2025 | | |
December 31,
2024 | |
| Withholding taxes | |
| 16,049 | | |
| 7,908 | |
| Payroll Taxes | |
| 40,795 | | |
| 35,647 | |
| Social security contribution on revenues | |
| 40,534 | (1) | |
| 37,342 | |
| Income tax and social contribution | |
| 721,522 | | |
| 562,557 | |
| Other taxes | |
| 7,598 | | |
| 4,751 | |
| Total | |
| 826,498 | | |
| 648,205 | |
| (1) | As of December 31, 2025 the amount R$ 20,491 was reclassified
from Taxes Payable to Tax Claims as explained in note 19c. No amount was reclassified for December 31, 2024. |
|
| Schedule of Income Tax and Social Contribution |
| | |
December 31,
2025 | | |
December 31,
2024 | | |
December 31,
2023 | |
| | |
| | |
| | |
| |
| Profit before income tax | |
| 317,339 | | |
| 345,972 | | |
| 1,667 | |
| Income tax and social contribution (1) | |
| (142,801 | ) | |
| (155,688 | ) | |
| (750 | ) |
| Permanent additions/exclusions | |
| 967,068 | | |
| 61,503 | | |
| 36,438 | |
| Effect of different tax rates – subsidiaries | |
| 30,528 | | |
| 6,461 | | |
| 6,683 | |
| Compensation of previously unrecognized deductible temporary differences | |
| 246 | | |
| 22,579 | | |
| (10,616 | ) |
| Compensation of previously unrecognized tax losses | |
| 72,658 | | |
| 26,463 | | |
| 14,913 | |
| Deferred tax asset recognition (2) | |
| 790,244 | | |
| - | | |
| 82,959 | |
| R&D Tax incentives (3) | |
| 64,910 | | |
| 20,245 | | |
| - | |
| Others | |
| 8,482 | | |
| (14,244 | ) | |
| (57,501 | ) |
| Total income tax and social contribution | |
| 824,267 | | |
| (94,184 | ) | |
| 35,688 | |
| Current taxes | |
| (655,463 | ) | |
| (545,603 | ) | |
| (50,815 | ) |
| Deferred taxes | |
| 1,479,730 | | |
| 451,419 | | |
| 86,503 | |
| Total income tax and social contribution | |
| 824,267 | | |
| (94,184 | ) | |
| 35,688 | |
| Effective rate (%) | |
| (260 | )% | |
| 27 | % | |
| 2,140 | % |
| (1) | The Group’s operations are primarily conducted in entities
subject to income tax and social contribution in Brazil. |
All material entities in Brazil are subject to
corporate income tax of 25%. Social contribution is generally levied at 20% for financial entities and 9% for non-financial entities.
The tax rate used was the one applicable to PicPay Bank, which represents the most significant portion of the operations of the Group.
The effect of other tax rates is shown in the table above as “Effect of different tax rates – subsidiaries”.
| (2) | As aforementioned on Note 10, PicPay recognized the deferred
tax asset on the previously unrecognized tax losses carryforward and temporary differences. |
| (3) | The Company benefited from tax incentives under the Brazilian
R&D program, which encourages technological innovation through research and development in technology. A total benefit was recognized
as a reduction to income tax expense. |
|
| Schedule of Unrecognized Deferred Tax Assets |
The reduction in the amount of unrecognized deferred
tax assets was due to the recognition of PicPay deferred tax assets presented on Note 10 above.
| | |
December 31, 2025 | | |
December 31, 2024 | |
| | |
Gross amount | | |
Tax effect | | |
Gross amount | | |
Tax effect | |
| Deductible temporary differences | |
| 14,054 | | |
| 5,262 | | |
| 218,875 | | |
| 74,953 | |
| Tax losses | |
| 275,109 | | |
| 101,390 | | |
| 2,074,442 | | |
| 709,619 | |
| Total | |
| 289,163 | | |
| 106,652 | | |
| 2,293,317 | | |
| 784,572 | |
|