XML 79 R35.htm IDEA: XBRL DOCUMENT v3.21.1
Tax Situation
 12 Months Ended
Dec. 31, 2020
Text block [abstract]  
Tax Situation
29
TAX SITUATION
 
 
a)
Each company of the Corporation is individually subject to the applicable taxes in Peru, Chile and Colombia. Management considers that it has determined the taxable income under general income tax laws in accordance with the tax legislation current effective of each country.
 
 
b)
Changes in the Income Tax Law in Colombia - 
With the entry into force of the law 2010 of December 2019 law of economic growth, employment, investment, strengthening of public finances and the progressivity, equity and efficiency of the tax system, the following was stipulated as of January 1, 2020.
The income tax rate applicable to national societies, permanent establishments and foreign legal entities will be 32%, 31% and 30% for the periods 2020,2021 and 2022, respectively.
Payments abroad for interest, commissions, fees, royalties, leases, personal services are subject to withholding tax at the rate of 20%. Payments for consulting, technical services and technical assistance provided by
non-residents
are subject to the 20% withholding tax rate. Payments for financial returns to
non-residents
are subject to the 15% withholding tax rate. Payments to the parent company for management fee, are subject to the 33% withholding tax rate.
In case of an increase in taxable income of 30% with respect to the previous year, for fiscal years 2020 and 2021, the statute of limitation of the returns would be six (6) months and in the case of a 20% increase year will be close at month twelve (12).
 
 
c)
The income tax expense shown in the consolidated statement of income comprises:
 
 
  
2018
 
  
2019
 
  
2020
 
Current income tax
  
 
151,039
 
  
 
114,240
 
  
 
53,134
 
Deferred income tax (Note 24)
  
 
(26,938
) 
  
 
189,131
 
  
 
5,310
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
  
 
124,101
 
  
 
303,371
 
  
 
58,444
 
(-) Discontinued Operations
  
 
(13,108
) 
  
 
—  
 
  
 
—  
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Income tax expense
  
 
110,993
 
  
 
303,371
 
  
 
58,444
 
 
  
 
 
 
  
 
 
 
  
 
 
 

 
d)
The Corporation’s income tax differs from the theoretical amount that would have resulted from applying the weighted-average income tax rate applicable to the profit reported by of the consolidated companies, as follows:
 
 
  
2018
 
  
2019
 
  
2020
 
Profit (loss) before income tax
  
 
124,005
 
  
 
(535,271
) 
  
 
(131,900
) 
 
  
 
 
 
  
 
 
 
  
 
 
 
Income tax by applying local applicable tax
  
   
  
   
  
   
rates on profit generated in the respective countries
  
 
37,823
 
  
 
(157,744
) 
  
 
(39,719
) 
Tax effect on:
  
   
  
   
  
   
- Reversal of deferred income tax asset
  
 
—  
 
  
 
174,716
 
  
 
7,950
 
-
Non-recoverable
item
  
 
—  
 
  
 
85,301
 
  
 
19,794
 
-
Non-deductible
expenses
  
 
70,411
 
  
 
84,620
 
  
 
49,580
 
- Unrecognized deferred income tax asset
  
 
8,592
 
  
 
82,424
 
  
 
24,930
 
- Change in prior years estimations
  
 
3,235
 
  
 
36,529
 
  
 
2,213
 
- Provision of tax contingencies
  
 
—  
 
  
 
7,079
 
  
 
(3,421
) 
- Adjustment for changes in rates of income tax
  
 
1,524
 
  
 
622
 
  
 
(240
) 
-
Non-taxable
income
  
 
(1,691
) 
  
 
(1,195
) 
  
 
(22
) 
- Equity method (profit) loss
  
 
(1,094
) 
  
 
(64
) 
  
 
(227
) 
- Others
  
 
(7,807
) 
  
 
(8,917
) 
  
 
(2,394
) 
 
  
 
 
 
  
 
 
 
  
 
 
 
Income tax
  
 
110,993
 
  
 
303,371
 
  
 
58,444
 
 
  
 
 
 
  
 
 
 
  
 
 
 

 
e)
The theoretical tax disclosed is the result of applying the income tax rate in accordance with the tax legislation of the country where each company that is part of the Corporation is domiciled. In this sense, companies domiciled in Peru, Chile, and Colombia applied in 2020 income tax rates of 29.5%, 27% and 32% respectively (29.5%, 27% and 33% for 2019). Norvial S.A., Tren Urbano de Lima S.A., Concesionaria Via Expresa Sur S.A. and UNNA ENERGIA S.A. (Blocks III and IV) have legal stability contracts signed with the Peruvian Government in force during the term of the associated concessions. Therefore, the consolidated theoretical amount is obtained from the weighting of the profit or loss before income tax and the applicable income tax rate. 
 
Country
  
Local

Tax

Rates
 
 
Profit

before

Income Tax
 
  
Income Tax
 
 
  
(A)
 
 
(B)
 
  
(A)*(B)
 
2018
  
   
 
   
  
   
Peru
  
 
29.50
% 
 
 
151,627
 
  
 
44,730
 
Peru - Norvial S.A.
  
 
27.00
% 
 
 
21,104
 
  
 
5,698
 
Peru - Tren Urbano de Lima S.A.
  
 
30.00
% 
 
 
125,136
 
  
 
37,541
 
Peru -Via Expresa Sur S.A.
  
 
30.00
% 
 
 
2,951
 
  
 
885
 
Peru - UNNA ENERGIA S.A.
  
 
29.00
% 
 
 
35,421
 
  
 
10,272
 
Chile
  
 
27.00
% 
 
 
(30,710
) 
  
 
(8,292
) 
Colombia
  
 
37.00
% 
 
 
11,851
 
  
 
4,385
 
Colombia
  
 
33.00
% 
 
 
1,984
 
  
 
655
 
Bolivia
  
 
25.00
% 
 
 
(137
) 
  
 
(34
) 
Unrealized gains
  
   
 
 
(195,222
) 
  
 
(58,017
) 
 
  
   
 
 
 
 
  
 
 
 
 
  
   
 
 
124,005
 
  
 
37,823
 
 
  
   
 
 
 
 
  
 
 
 
2019
  
   
 
   
  
   
Peru
  
 
29.50
% 
 
 
(1,612,192
) 
  
 
(475,597
) 
Peru - Norvial S.A.
  
 
27.00
% 
 
 
24,066
 
  
 
6,498
 
Peru - Tren Urbano de Lima S.A.
  
 
30.00
% 
 
 
121,080
 
  
 
36,324
 
Peru - Via Expresa Sur S.A.
  
 
30.00
% 
 
 
(17,752
) 
  
 
(5,326
) 
Peru - UNNA ENERGIA S.A.
  
 
29.00
% 
 
 
35,421
 
  
 
10,272
 
Chile
  
 
27.00
% 
 
 
(96,360
) 
  
 
(26,017
) 
Colombia
  
 
33.00
% 
 
 
(11,824
) 
  
 
(3,902
) 
Bolivia
  
 
25.00
% 
 
 
681
 
  
 
170
 
Unrealized gains
  
 
0.00
% 
 
 
1,021,609
 
  
 
299,834
 
 
  
   
 
 
 
 
  
 
 
 
 
  
   
 
 
(535,271
) 
  
 
(157,744
) 
 
  
   
 
 
 
 
  
 
 
 
2020
  
   
 
   
  
   
Peru
  
 
29.50
% 
 
 
(132,192
) 
  
 
(38,997
) 
Peru - Norvial S.A.
  
 
27.00
% 
 
 
(2,029
) 
  
 
(548
) 
Peru - Tren Urbano de Lima S.A.
  
 
30.00
% 
 
 
87,521
 
  
 
26,256
 
Peru - Via Expresa Sur S.A.
  
 
30.00
% 
 
 
(53,697
) 
  
 
(16,109
) 
Peru - UNNA ENERGIA S.A.
  
 
29.00
% 
 
 
(1,930
) 
  
 
(540
) 
Chile
  
 
27.00
% 
 
 
(15,282
) 
  
 
(4,126
) 
Colombia
  
 
32.00
% 
 
 
(11,178
) 
  
 
(3,577
) 
Bolivia
  
 
25.00
% 
 
 
(13
) 
  
 
(3
) 
Unrealized gains
  
   
 
 
(3,100
) 
  
 
(2,075
) 
 
  
   
 
 
 
 
  
 
 
 
 
  
   
 
 
(131,900
) 
  
 
(38,379
) 
 
  
   
 
 
 
 
  
 
 
 


 
f)
Peruvian tax authorities have the right to examine, and, if necessary, amend the income tax determined by the Company in the last four years—from January 1 of the year after the date when the tax returns are filed (open fiscal year). Therefore, years 2016 through 2020 are subject to examination by the tax authorities. Management considers that no significant liabilities will arise as a result of these possible tax examinations. Additionally, income tax returns for fiscal years 2017 to 2020 remain open for examination by the Chilean tax authorities who have the right to carry out said examination within the three years following the date the income tax returns have been filed. Fiscal years 2018, 2019 and 2020 are open for tax audit by Colombian tax authorities. Colombian tax authorities are entitled to audit two consecutive years following the date the income tax returns were filed.
 
 
g)
In accordance with current Peruvian legislation, for purposes of determining income tax and general sales tax, the transfer prices of transactions with related companies and companies resident in low or no tax territories must be considered, for which purpose documentation and information must be available to support the valuation methods used and the criteria considered for their determination (transfer pricing rules). The Tax Administration is authorized to request this information from the taxpayer. Based on the analysis of the Company’s operations, Management and its legal advisors estimate that the transfer prices of transactions with related companies are based on market conditions, similar to those agreed with third parties, as of December 31, 2020.
 
 
h)
Temporary tax on net assets (ITAN)
Is applied by the companies which operate in Peru, to third category income generators subject to the Peruvian Income Tax General Regime. Effective the year 2012, the tax rate is 0.4%, applicable to the amount of the net assets exceeding S/1 million.
The amount effectively paid may be used as a credit against payments on account of income tax or against the provisional tax payment of the income tax of the related period.
 
 
i)
In 2019, certain operations have not been recognized to have impact on income tax such as: additional impairment of investments in GSP (Negocios del Gas S.A.) S/67 million, account receivable from the tax authorities converted to a contingent asset (Cumbra Peru S.A.) amount to S/7.7 million and write-offs of
non-recoverable
assets (Concesionaria Via Expresa Sur S.A. and Promotora Larcomar S.A.) equal to S/10.8 million.
 
 
j)
The current income tax payable, after applying the corresponding tax credits and whose due date is up to the first week of April of the following year, includes mainly:
 
•  Tren Urbano de Lima S.A.
  
S/22 million in 2020 (S/7 million in 2019)
•  Inmobiliaria Almonte
  
S/4.1 million en 2020
•  Consorcio Vial Sierra
  
S/3.4 million in 2020