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INCOME TAXES
 12 Months Ended
Dec. 31, 2021
Major components of tax expense (income) [abstract]  
INCOME TAXES INCOME TAXES
The major components of income tax recovery (expense) for the year ended December 31 are as follows:
(MILLIONS)202120202019
Income tax recovery (expense) applicable to:
Current taxes
Attributed to the current period$(43)$(66)$(70)
Deferred taxes
Income taxes – origination and reversal of temporary differences160 185 78 
Relating to change in tax rates / imposition of new tax laws(147)(7)1 
Relating to unrecognized temporary differences and tax losses16 35 (52)
29 213 27 
Total income tax recovery (expense)$(14)$147 $(43)
The major components of deferred income tax (expense) recovery for the year ended December 31 recorded directly to other comprehensive income are as follows:
(MILLIONS)202120202019
Deferred income taxes attributed to:
Financial instruments designated as cash flow hedges$3 $13 $4 
Other(13)(3)5 
Revaluation surplus
Origination and reversal of temporary differences(1,003)(934)(432)
Relating to changes in tax rates / imposition of new tax laws(159)— (59)
$(1,172)$(924)$(482)
Brookfield Renewable’s effective income tax recovery (expense) for the year ended December 31 is different from its recovery at its statutory income tax rate due to the differences below:
(MILLIONS)202120202019
Statutory income tax recovery (expense)(1)
$14 $53 $(34)
Reduction (increase) resulting from:
Decrease (increase) in tax assets not recognized(5)34 (52)
Differences between statutory rate and future tax rate and tax rate changes(147)(7)1 
Subsidiaries’ income taxed at different rates129 68 38 
Other(5)(1)4 
Effective income tax recovery (expense)$(14)$147 $(43)
(1)Statutory income tax expense is calculated using domestic rates applicable to the profits in the relevant country.
The above reconciliation has been prepared by aggregating the information for all of Brookfield Renewable’s subsidiaries using the domestic rate in each tax jurisdiction.
Brookfield Renewable’s effective income tax rate was (26.9)% for the year ended December 31, 2021 (2020: 76.6% and 2019: 35.0%). The effective tax rate is different than the statutory rate primarily due to rate differentials, legislative changes in tax rates during the year, changes in tax assets not recognized and non-controlling interests’ income not subject to tax.
The following table details the expiry date, if applicable, of the unrecognized deferred tax assets as at December 31:
(MILLIONS)202120202019
Less than four years$5 $5 $3 
Thereafter138 149 431 
The deferred tax assets and liabilities of the following temporary differences have been recognized in the consolidated financial statements for the year ended December 31:
(MILLIONS)Non-capital
losses		Difference
between tax and
carrying value		Net deferred
tax (liabilities)
assets
As at January 1, 2019$835 $(5,060)$(4,225)
Recognized in net income (loss)23 4 27 
Recognized in equity11 (491)(480)
Business combination7 14 21 
Foreign exchange9 (41)(32)
As at December 31, 2019885 (5,574)(4,689)
Recognized in net income (loss)273 (60)213 
Recognized in equity(52)(865)(917)
Business combination30 18 48 
Foreign exchange4 31 35 
As at December 31, 20201,140 (6,450)(5,310)
Recognized in net income (loss)23 6 29 
Recognized in equity8 (1,068)(1,060)
Business combination(28)33 5 
Foreign exchange6 312 318 
As at December 31, 2021$1,149 $(7,167)$(6,018)
 
The deferred income tax liabilities include $6,082 million (2020: $5,145 million and 2019: $4,293 million) of liabilities which relate to property, plant and equipment revaluations included in equity.
The unrecognized taxable temporary difference attributable to Brookfield Renewable’s interest in its subsidiaries, branches, associates, and joint ventures is $5,856 million (2020: $5,405 million and 2019: $3,633 million).