The charge for current taxation has been calculated at the following rates on the taxable profit generated from the countries in which the Group operates:


Malta	5%	(a)	Israel	23%
Cayman Islands	0%		Mexico	30%
United Kingdom	0% and 19%	(b)	India	22%
Brazil	34%	(c)	Chile	27%
Colombia	35%		Peru	29.5%
Argentina	25%, 30% and 35%	(d)	Morocco	28.3%
Ecuador	25%		Egypt	22.5%
Uruguay	25%		South Africa	27%
Panama	25%		Nigeria	30%
Paraguay	10%		Indonesia	22%
Guatemala	25%		Honduras	25%
Nicaragua	30%		Philippines	20%
Rwanda	30% and 28%	(e)	Singapore	17%
Kenya	30%		Malaysia	24%
Tanzania	30%		Thailand	0%
Uganda	20%		United Arab Emirates	0%
United States of America	21%		Vietnam	20%
Ivory Coast	25%		Japan	22%
El Salvador	25%		Ghana	25%
Bangladesh	28%		Cameroon	29%
Dominican Republic	27%		Costa Rica	30%
Bolivia	25%		Ireland	12.5%
Saudi Arabia	20%		Senegal	30%
Spain	25%

(a) In 2020, the Group elected to form a fiscal unit for itself and its ‘Qualifying subsidiary’. Total chargeable income of the fiscal unit, this resulted in the application corporate tax rate of 5% to total chargeable income allocated to the principal taxpayer.

(b) DLocal LLP and dLocal Corp LLP are tax transparent UK partnerships subject to 0% income tax, dLocal OpCo UK LTD is subject to an income tax rate of 19%.

(c) Comprise IRPJ (Imposto de Renda de Pessoa Juridica) at the rate of 25% and CSLL (Contribuição Social sobre o Lucro Liquido) at the rate of 9%.

(d) Progressive income tax rates: 25%, 30% and 35% depending on the tax result.

(e) Income tax rate changed from 28% to 30% after September 14, 2023 because of change in local legislation.

The income tax charge recognized in profit and losses included the following:


Current Income Tax	2023			2022			2021
Current Income Tax on profits for the year		(31,924	)		(11,682	)		(6,940	)
Total Current Income Tax expense		(31,924	)		(11,682	)		(6,940	)

Deferred income tax	2023			2022			2021
Increase/(decrease) in deferred income tax assets		1,757			229			(83	)
Increase/(decrease) in deferred income tax liabilities		739			(133	)		(624	)
Total Deferred income tax benefit / (expense)		2,496			96			(707	)
Income Tax expense		(29,428	)		(11,586	)		(7,647	)

Deferred Tax Assets

The balance comprises temporary differences attributable to:


	2023		2022		2021
Tax Losses		233		348		31
Accrued Liabilities		773		99		318
Exchange differences		89		—		—
Other (i)		1,193		51		24
Total		2,288		498		373

(i) In 2023, includes temporary differences of USD 1,112 regarding the tax effect of the interest expense generated on the intra-group loan between subsidiaries in Argentina and Malta.

Movements:


	Tax losses			Accrued liabilities			Exchange differences		Other		Total
At January 1, 2023		348			99			—		51		498
(Charged) / Credited to profit & loss		(115	)		674			89		1,142		1,790
At December 31, 2023		233			773			89		1,193		2,288

	Tax losses			Accrued liabilities			Exchange differences		Other		Total
At January 1, 2022		31			316			0		26		373
Credited / (Charged) to profit & loss		317			(217	)		0		25		125
At December 31, 2022		348			99			—		51		498

Deferred Tax Liabilities

The balance of Deferred Tax Liabilities is comprised of temporary differences attributable to:


	2023		2022		2021
Accrued receivables		353		946		900
Other		471		206		223
Total		824		1,152		1,123

Movements:


	Accrued Liabilities			Other			Total
At January 1, 2023		946			206			1,152
Credited / (charged) to profit & loss		(593	)		265			(328	)
At December 31, 2023		353			471			824

At January 1, 2022		900			223			1,123
Credited / (charged) to profit & loss		46			(17	)		29
At December 31, 2022		946			206			1,152

As of December 31, 2023 and 2022, no deferred tax liability has been recognized on investments in the Group subsidiaries. The Group has concluded it has the ability and intention to control the timing of any distribution from its subsidiaries and that it is probable there will be no reversal in the foreseeable future in a way that would result in a charge to taxable profit.

The Group’s effective Income Tax rate in 2023 was 16.5% (9.6% and 8.9% in the years ended December 31, 2022 and 2021, respectively). For 2023 and 2022, the Group applied for fiscal consolidation in Malta resulting in a domestic rate of 5% (fiscal consolidation was not applied for 2021, resulting in a domestic rate of 35% with a 30% of tax refund). The reconciliation between the effective Income Tax rate and the statutory rate in Malta of 5% in 2023 and 2022, and 35% for fiscal year 2021 was as follows:


	2023			2022			2021
Profit before Income Tax		178,514			120,283			85,500
Tax at the domestic rates applicable to profit before income tax in the respective jurisdiction		(8,926	)		(6,014	)		(4,275	)
Permanent differences:
Tax effect of non-taxable income		822			555			3,369
Effects from entities taxes with different rates (1)		(15,930	)		(5,440	)		(3,127	)
Other permanent differences (2)		(5,394	)		(687	)		(3,614	)
Total		(29,428	)		(11,586	)		(7,647	)

(1) Increase mainly refers to a higher proportion of taxable income from emerging markets subject to income tax rate exceeding the statutory rate in Malta of 5%.

(2) During the year ended December 31, 2023, other permanent differences included non-deductible expenses of USD 1,868 (USD 1,088 in 2022) and by other permanent differences for USD 3,525 (USD 401 in 2022), which include USD 1,472 of hyperinflation adjustment in Argentinian subsidiaries. During the year ended December 31, 2022 it also includes disallowed expenses of USD 678 and taxable income from subsidiaries not included in the Profit before Income Tax for USD 1,357.