INCOME TAX PAYABLE AND DEFERRED INCOME TAX ASSETS/LIABILITIES

Schedule of deferred income tax assets and liabilities, net and the actions for recourse tax receivable


	As of December 31,
	2024	2023
Tax carryforward	(50,689)	(1,313,027)
Allowance for doubtful accounts	(37,878)	(44,575)
Legal Claims and contingent liabilities	(10,906)	(19,430)
PP&E, intangible assets and right of use assets	1,580,389	1,653,448
Cash dividends from foreign companies	24,083	36,206
Income tax inflation adjustment effect	178,413	878,247
Other deferred tax liabilities (assets), net	(1,947)	(421)
Total deferred tax liabilities, net	1,681,465	1,190,448
Actions for recourse tax receivable	(1,083)	(2,360)
Total deferred tax liability, net	*()1,680,382**	1,188,088

Net deferred tax assets	(40,237)	(36,693)
Net deferred tax liabilities	1,720,619	1,224,781

(*)Includes $7,134 million of currency translation adjustments on foreign subsidiaries’ initial balances and $1,409 million of deferred tax liabilities from the acquisitions of TSMA and Manda.

Schedule of income tax reconciliation between amounts computed based on statutory income tax rate and pre-tax income


	Years ended December 31,
	2024		2023		2022

	Profit (loss)
Income (loss) before income tax expense	1,759,242		(1,561,564)		(1,920,042)
Non-taxable items – Earnings from associates and joint ventures	13,994		5,014		(6,773)
Non-taxable items – Impairment of Goodwill charges	—		—		2,017,803
Non-taxable items – Other	(2,294)		3,450		12,672
Restatement in current currency of Equity, Goodwill and others	1,246,350		2,699,364		2,070,414
Subtotal	3,017,292		1,146,264		2,174,074
Effective income tax rate	34.31	%	33.65	%	34.41	%
Income tax expense at statutory tax rate of each subsidiary	(1,035,341)		(385,672)		(748,157)
Deferred tax liability restatement in current currency and others	1,632,943		2,455,250		1,790,848
Income tax inflation adjustment	(1,089,173)		(1,141,442)		(814,768)
Actions for recourse	—		—		(9)
Income tax on cash dividends of foreign companies	(7,458)		(29,733)		(8,701)
*Income tax benefit (expense) ()**	(499,029)		898,403		219,213

Current tax	(13,299)		(7,700)		144,915
Deferred tax	(485,730)		906,103		74,298
Income tax benefit (expense)	(499,029)		898,403		219,213

(*)	In 2024 and 2023 includes $ 3,306 million and $(1,516) million, respectively corresponding to the adjustment made in the Income tax affidavit of 2023 and 2022, respectively