XML 211 R23.htm IDEA: XBRL DOCUMENT v3.25.0.1
Income tax
 9 Months Ended 12 Months Ended
Sep. 30, 2024
Dec. 31, 2023
Major components of tax expense (income) [abstract]    
Income tax

Note 12 - Income tax:

BBB Foods Inc., as an entity incorporated and existing under the laws of the British Virgin Islands (“BVI”), is not subject to any form of taxation and therefore there is no tax rate to be applied and will continue to be in the future. The laws of the BVI specifically provide that a BVI business entity such as BBB Foods Inc. is exempt from any income, capital gains, estate or other tax in the British Virgin Islands. However, the statutory rate of income tax in Mexico applicable to the Company’s Mexican Subsidiaries was and will continue to be 30%.

Income tax expense is recognized based on management’s estimate of the weighted average effective annual income tax rate expected for the full fiscal year. In addition, there were no enacted or substantially enacted tax rates to recognize the remeasurement of deferred tax balances in the interim periods.

The Company estimates the amount of expenditure and the likely level of tax benefits in the coming interim periods and the likely effect on the effective tax rate for the full year. The expenditures related to the opening of new stores which consisted mainly in new leases and property, furniture, equipment, and leasehold improvements had a material effect on the effective tax rate. Therefore, the Company recognized a net deferred tax assets of Ps. 260,012 and Ps.102,473 in the nine-month periods ended September 30, 2024 and 2023, respectively, and spread the effect of the change in the deferred tax assets over the full years ending December 31, 2024, and 2023, respectively, based on application of an annual effective tax rate.

As indicated above, the transactions in BVI, are not subject to tax, and the Mexican subsidiaries are subject to 30% tax rate. Therefore, according to IAS 34 the Company determined the estimated average annual tax rate used for the nine-month periods ended September 30, 2024, and 2023 separately for the transactions of each jurisdiction, where the 0% tax rate was used to the items related to BVI, and 39% and 60% respectively for the Mexican subsidiaries, which exclude the impact of the non-deductible share based payments that were not considered in the effective tax rate given the distortive effect, but instead such impact was considered on each of the interim periods as they arose. Although the Company historically had losses before income taxes at the consolidated level, the Mexican Subsidiaries had historically had profits before income taxes (without considering the share-based payments expense) to which an annual income tax is expected to be recognized for the full fiscal year. Moreover, in the nine-month period ended on September 30, 2024, the Company generated a consolidated profit before income tax.

Note 17 - Income tax

BBB Foods Inc., as an entity incorporated and existing under the laws of the British Virgin Islands (“BVI”), is not subject to any form of taxation and therefore there is no tax rate to be applied and this will continue to be the case in the future. The laws of the BVI specifically provide that a BVI business entity such as BBB Foods Inc. is exempt from any income, capital gains, estate or other tax in the British Virgin Islands.

The statutory rate of income tax in Mexico applicable to the Company’s Mexican Subsidiaries was and will continue to be 30%. In 2023, Tiendas BBB determined a tax profit of Ps.6,238 (Ps.8,531 in 2022; Ps.15,185 in 2021); Desarrolladora Tres B has determined a tax loss of Ps.307, (Ps.132 in 2022; Ps.671 in 2021), which was updated for inflation to Ps.315 as permitted by tax authorities; and Tiendas Tres B obtained a tax profit of Ps.1,124,318 (Ps.1,003,720 in 2022; Ps.618,404 in 2021). However, Tiendas Tres B tax profit in 2021 was partially offset by prior year tax losses. The tax result differs from the accounting result mainly for those items that are accumulated and deducted differently for accounting and tax purposes, for the recognition of the effects of inflation for tax purposes, as well as for those items that only affect the accounting or tax result.

17.1.
The income tax expense in 2023, 2022 and 2021 is analyzed as shown below:

 

 

December 31,
2023

 

 

December 31,
2022

 

 

December 31,
2021

 

Current income tax

 

Ps.

 

(309,989

)

 

Ps.

 

(287,309

)

 

Ps.

 

(156,907

)

Deferred income tax

 

Ps.

 

104,741

 

 

Ps.

 

85,946

 

 

Ps.

 

65,095

 

Total

 

Ps.

 

(205,248

)

 

Ps.

 

(201,363

)

 

Ps.

 

(91,812

)

 

17.2.
As of December 31, 2023, 2022 and 2021, the main temporary differences on which the deferred income tax was recognized and analyzed is as shown below:

 

 

December 31,
2023

 

 

December 31,
2022

 

 

December 31,
2021

 

Advanced payments

 

Ps.

 

(56,059

)

 

Ps.

 

(47,638

)

 

Ps.

 

(25,614

)

Property, furniture, equipment, and lease-hold improvements

 

 

 

(23,667

)

 

 

 

(43,510

)

 

 

 

(50,224

)

Lease liabilities

 

 

 

6,255,817

 

 

 

 

5,253,632

 

 

 

 

3,435,431

 

Right-of-use assets

 

 

 

(5,520,596

)

 

 

 

(4,696,459

)

 

 

 

(3,047,966

)

Provisions

 

 

 

460,212

 

 

 

 

398,269

 

 

 

 

327,872

 

Accrued expenses

 

 

 

293,814

 

 

 

 

200,416

 

 

 

 

109,587

 

Inventories

 

 

 

(63,517

)

 

 

 

(67,842

)

 

 

 

(38,706

)

 

Ps.

 

1,346,004

 

 

Ps.

 

996,868

 

 

Ps.

 

710,380

 

Applicable income tax rate

 

 

 

30

%

 

 

 

30

%

 

 

 

30

%

Deferred income tax asset

 

Ps.

 

403,801

 

 

Ps.

299,060

 

 

Ps.

 

213,114

 

 

17.3.
The movement in deferred income tax assets and liabilities during the year, without taking into account the compensation of balances under the same tax jurisdiction, is as shown below:

 

 

January 1,
2021

 

 

Effects in
the results
of the year

 

 

December 31,
2021

 

 

Effects in
the results
of the year

 

 

December 31,
2022

 

 

Effects in
the results
of the year

 

 

 

December 31,
2023

 

Assets for deferred taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax losses to be carryforward

 

Ps.

 

12,439

 

 

Ps.

 

(12,439

)

 

Ps.

 

—

 

 

Ps.

 

—

 

 

Ps.

 

—

 

 

Ps.

 

—

 

 

Ps.

 

—

 

Provisions

 

 

 

84,391

 

 

 

 

13,970

 

 

 

 

98,361

 

 

 

 

21,119

 

 

 

 

119,480

 

 

 

 

18,583

 

 

 

 

138,063

 

Lease liabilities

 

 

 

780,979

 

 

 

 

249,650

 

 

 

 

1,030,629

 

 

 

 

545,460

 

 

 

 

1,576,089

 

 

 

 

300,655

 

 

 

 

1,876,744

 

Accrued expenses

 

 

 

12,617

 

 

 

 

20,259

 

 

 

 

32,876

 

 

 

 

27,249

 

 

 

 

60,125

 

 

 

 

28,020

 

 

 

 

88,145

 

Total assets for deferred tax

 

Ps.

 

890,426

 

 

Ps.

 

271,440

 

 

Ps.

 

1,161,866

 

 

Ps.

 

593,828

 

 

Ps.

 

1,755,694

 

 

Ps.

 

347,258

 

 

Ps.

 

2,102,952

 

Liabilities for deferred taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inventories

 

 

 

7,612

 

 

 

 

4,001

 

 

 

 

11,613

 

 

 

 

8,741

 

 

 

 

20,354

 

 

 

 

(1,298

)

 

 

 

19,056

 

Advanced payments

 

 

 

6,519

 

 

 

 

1,165

 

 

 

 

7,684

 

 

 

 

6,607

 

 

 

 

14,291

 

 

 

 

2,526

 

 

 

 

16,817

 

Property, furniture, equipment, and lease-hold improvements

 

 

 

15,634

 

 

 

 

(568

)

 

 

 

15,066

 

 

 

 

(2,014

)

 

 

 

13,052

 

 

 

 

(5,952

)

 

 

 

7,100

 

Right-of-use assets

 

 

 

712,642

 

 

 

 

201,747

 

 

 

 

914,389

 

 

 

 

494,548

 

 

 

 

1,408,937

 

 

 

 

247,241

 

 

 

 

1,656,178

 

Total liabilities for deferred tax

 

Ps.

 

742,407

 

 

Ps.

 

206,345

 

 

Ps.

 

948,752

 

 

Ps.

 

507,882

 

 

Ps.

 

1,456,634

 

 

Ps.

 

242,517

 

 

Ps.

 

1,699,151

 

Total asset – Net

 

Ps.

 

148,019

 

 

Ps.

 

65,095

 

 

Ps.

 

213,114

 

 

Ps.

 

85,946

 

 

Ps.

 

299,060

 

 

Ps.

 

104,741

 

 

Ps.

 

403,801

 

 

17.4.
The reconciliation between the current and effective combined income tax rates is shown below:

 

 

December 31,
2023

 

 

December 31,
2022

 

 

December 31,
2021

 

Loss before income tax

 

Ps.

 

(100,905

)

 

Ps.

 

(363,747

)

 

Ps.

 

(724,862

)

Current income tax rate

 

 

 

30

%

 

 

 

30

%

 

 

 

30

%

Income tax at legal rate

 

Ps.

 

30,272

 

 

Ps.

 

109,124

 

 

Ps.

 

217,459

 

Plus (less) effects of income tax on the following items:

 

 

 

 

 

 

 

 

 

 

 

 

Share-based payment

 

 

 

(115,370

)

 

 

 

(91,137

)

 

 

 

(42,637

)

Annual adjustment for inflation

 

 

 

(90,219

)

 

 

 

(105,615

)

 

 

 

(70,282

)

Unrecognized tax losses in no taxable entities

 

 

 

(20,955

)

 

 

 

(106,071

)

 

 

 

(200,218

)

Non-deductible expenses

 

 

 

(83,703

)

 

 

 

(64,766

)

 

 

 

(43,002

)

Property, furniture, equipment, and lease-hold improvements

 

 

 

48,049

 

 

 

 

46,219

 

 

 

 

30,657

 

Restatement of tax losses for the year

 

 

 

(92

)

 

 

 

(40

)

 

 

 

202

 

Non-cumulative income

 

 

 

21,253

 

 

 

 

6,655

 

 

 

 

4,904

 

Others

 

 

 

5,517

 

 

 

 

4,268

 

 

 

 

11,105

 

Income tax expense recognized in income

 

Ps.

 

(205,248

)

 

Ps.

 

(201,363

)

 

Ps.

 

(91,812

)

Effective income tax rate

 

 

 

(203.4

)%

 

 

 

(55.4

)%

 

 

 

(12.7

)%

 

17.5.
As of December 31, 2023, the Company maintained accumulated restated tax losses to carry forward for an amount of Ps.1,961, whose right to be offset against future profits expires as shown below:

 

Year of the loss

 

Desarrolladora
Tres B

 

 

Year of
expiration

2014

 

 

164

 

 

2024

2015

 

 

21

 

 

2025

2016

 

 

60

 

 

2026

2017

 

 

147

 

 

2027

2018

 

 

163

 

 

2028

2019

 

 

135

 

 

2029

2020

 

 

111

 

 

2030

2021

 

 

703

 

 

2031

2022

 

 

142

 

 

2032

2023

 

 

315

 

 

2033

 

 

1,961

 

 

 

 

Deferred income tax assets are recognized for tax loss carryforwards to the extent that the receipt of a tax benefit through future taxable income is likely. The Company did not recognize tax losses for an amount of Ps.1,961, Ps.1,568 and Ps.1,372 as of December 31, 2023, 2022 and 2021, since the recovery of such amounts was not probable.

The temporary differences associated with investments in the Group subsidiaries generate a deferred tax of zero, since BBB Foods Inc. is not a taxable entity as described above. The Company determined that the undistributed profits of its subsidiaries will not be distributed in the foreseeable future.