| Income and social contribution taxes |
| 18. | Income and social contribution taxes |
18.1. Deferred taxes
Deferred income and social contribution
tax assets and liabilities are offset when there is a legal right to offset tax credits against tax liabilities, and provided that they
refer to the same tax authority and the same legal entity.
The fiscal year for income tax and
social contribution calculation purposes is different from that adopted by the Company for the preparation of its consolidated financial
statements, which ends June 30 of each year.
Deferred income tax and social contribution
tax assets and liabilities as of June 30, 2025, and 2024 are as follows:
| | |
2025 | | |
2024 | |
| Assets | |
| | |
| |
| Noncurrent | |
| | |
| |
| Tax loss | |
| 205,319 | | |
| 129,892 | |
| Financial lease | |
| 43,653 | | |
| 36,622 | |
| Contingency, bonuses and fair value | |
| 30,747 | | |
| 28,885 | |
| Hedge | |
| 560 | | |
| 19,275 | |
| Allowance for expected credit losses | |
| 726 | | |
| 726 | |
| Difference in cost of farms | |
| 170 | | |
| 170 | |
| Share-based incentive plan (ILPA) | |
| 1,085 | | |
| 612 | |
| Provision of other accounts payable and receivable | |
| 2,798 | | |
| 673 | |
| Impairment of investment | |
| 1,654 | | |
| 1,654 | |
| Subscription warrant | |
| 43 | | |
| 43 | |
| | |
| 286,755 | | |
| 218,552 | |
| Liabilities | |
| | | |
| | |
| Noncurrent | |
| | | |
| | |
| Biological assets | |
| 25,149 | | |
| 36,830 | |
| Present value adjustment and other provisions | |
| 7,138 | | |
| 6,944 | |
| Derivative financial instruments | |
| 2,950 | | |
| — | |
| Surplus on investment | |
| 1,733 | | |
| 1,733 | |
| Costs of transactions | |
| 1,949 | | |
| 2,618 | |
| Provision of residual value and useful life of PPE assets | |
| 7,602 | | |
| 6,977 | |
| Accelerated depreciation of assets for rural activity | |
| 92,428 | | |
| 76,732 | |
| Deferred taxes on surplus value of PPE and investment property – Acquisition of Agrifirma | |
| 18,541 | | |
| 18,406 | |
| | |
| 157,490 | | |
| 150,240 | |
| Net balance | |
| 129,265 | | |
| 68,312 | |
The balances are presented in the balance
sheet as follows:
| Net deferred assets | |
| 166,145 | | |
| 88,031 | |
| Net deferred liabilities | |
| (36,880 | ) | |
| (19,719 | ) |
The net
change in deferred income tax is as follows:
| At June 30, 2023 | |
| 9,486 | |
| Tax losses | |
| 81,298 | |
| Adjustments in biological assets and agricultural products | |
| (19,983 | ) |
| Financial lease | |
| 9,946 | |
| Provisions for contingency and fair value | |
| (13,673 | ) |
| Derivative financial instruments | |
| 28,085 | |
| Costs of transactions | |
| (822 | ) |
| Provision for other accounts payable and receivable | |
| (304 | ) |
| Accelerated depreciation of assets for rural activity | |
| (24,208 | ) |
| Subscription warrant | |
| (632 | ) |
| Deferred taxes on surplus value | |
| 34 | |
| Share-based incentive plan (ILPA) | |
| (915 | ) |
| | |
| | |
| At June 30, 2024 | |
| 68,312 | |
| | |
| | |
| Tax losses | |
| 41,966 | |
| Adjustments in biological assets and agricultural products | |
| 11,681 | |
| Financial lease | |
| 6,097 | |
| Provisions for contingency and fair value | |
| 1,831 | |
| Derivative financial instruments | |
| (21,665 | ) |
| Costs of transactions | |
| 669 | |
| Provision for other accounts payable and receivable | |
| 2,125 | |
| Accelerated depreciation of assets for rural activity | |
| (10,261 | ) |
| Deferred taxes on goodwill | |
| (135 | ) |
| Share-based incentive plan (ILPA) | |
| 473 | |
| Temporary differences related to PPE | |
| (625 | ) |
| Acquisitions - business combination (Note 2.3) | |
| 28,797 | |
| At June 30, 2025 | |
| 129,265 | |
The expected realization of deferred
tax assets are as follows:
| | |
| 2024 | |
| 2026 | |
| 44,287 | |
| 2027 | |
| 19,719 | |
| 2028 | |
| 61,645 | |
| 2029 | |
| 39,980 | |
| 2030 to 2035 | |
| 121,124 | |
| | |
| 286,755 | |
18.2.
Income and social contribution tax expenses
| | |
2025 | | |
2024 | | |
2023 | |
| Income before income and social contribution taxes | |
| 124,648 | | |
| 191,515 | | |
| 281,709 | |
| Combined nominal rate of income tax and social contribution taxes – % | |
| 34 | % | |
| 34 | % | |
| 34 | % |
| | |
| (42,380 | ) | |
| (65,115 | ) | |
| (95,781 | ) |
| | |
| | | |
| | | |
| | |
| Share of loss in a Joint Venture | |
| (484 | ) | |
| (20 | ) | |
| (24 | ) |
| Management bonus | |
| (726 | ) | |
| (596 | ) | |
| (639 | ) |
| Fair value variation of accounts receivable from sale of farms | |
| 3,744 | | |
| (657 | ) | |
| 5,821 | |
| Non-deductible expenses | |
| (48 | ) | |
| (140 | ) | |
| - | |
| Net effect of profit taxed abroad | |
| (107 | ) | |
| (307 | ) | |
| (1,459 | ) |
| Net effect of subsidiaries taxed whose profit is computed as a percentage of gross revenue (*) | |
| 56,057 | | |
| 96,914 | | |
| 81,133 | |
| Other permanent addition/exclusion | |
| (2,685 | ) | |
| 5,273 | | |
| (2,224 | ) |
| | |
| | | |
| | | |
| | |
| Income and social contribution taxes for the year | |
| 13,371 | | |
| 35,352 | | |
| (13,173 | ) |
| | |
| | | |
| | | |
| | |
| Current | |
| (19,315 | ) | |
| (23,474 | ) | |
| (53,224 | ) |
| Deferred | |
| 32,686 | | |
| 58,826 | | |
| 40,051 | |
| | |
| 13,371 | | |
| 35,352 | | |
| (13,173 | ) |
| Effective tax rate | |
| 11 | % | |
| 18 | % | |
| -5 | % |
| (*) | For some of our real estate subsidiaries, profit tax is measured
based on the regime whereby profit is computed as a percentage of gross revenue, i.e., income tax is determined on a simplified base
to calculate the taxable profit (32% for lease revenues, 8% for sale of farms and 100% for other earnings). This results effectively
in taxing the profit of subsidiaries at a rate lower than if taxable income were based on accounting records. |
|