INCOME AND SOCIAL CONTRIBUTION TAXES (Tables)

12 Months Ended

Dec. 31, 2025

INCOME AND SOCIAL CONTRIBUTION TAXES

Schedule of reconciliations of income and social contribution taxes at statutory rates to amounts presented in the Statement Of Income


		2025		2024		2023
Income (loss) before income taxes		2,524,447		5,463,715		9,346,605
Statutory tax rates		34	%	34	%	34	%
Income and social contribution taxes at statutory rates		(858,312)		(1,857,663)		(3,177,846)
Tax adjustment with respect to:
- Difference in tax rates in foreign companies		402,939		805,361		281,754
- Equity in earnings of unconsolidated companies		32,511		157,919		281,386
- Interest on equity (Note 2.14)		65		(1,662)		302,602
- Interests on tax lawsuits		42,417		38,249		134,131
- Tax credits and incentives		9,311		10,382		16,634
- Deferred tax assets not recognized / Realization, net		(565,697)		38,481		44,000
- Other permanent differences, net		(169,243)		(55,720)		307,717
Income and social contribution taxes		(1,106,009)		(864,653)		(1,809,622)
Current		(1,119,427)		(1,159,640)		(1,810,459)
Deferred		13,418		294,987		837

Schedule of breakdown and changes in deferred income and social contribution tax assets and liabilities at statutory tax rates


		Balance as of		Recognized in		Comprehensive				Balance as of
		January 01, 2023		income		Income		Others		December 31, 2023
Tax loss carryforward		639,046		209,405		(10)		88,975		937,416
Social contribution tax losses		173,579		67,505		—		—		241,084
Provision for tax, civil and labor liabilities		525,158		55,830		(40)		—		580,948
Benefits granted to employees		199,773		(276)		(106,576)		—		92,921
Other temporary differences		347,051		56,739		(120,863)		—		282,927
Deferred exchange variance		834,335		(410,931)		223		—		423,627
Provision for losses		43,737		49,696		(33)		—		93,400
Fair value adjustments on businesses acquired		(694,543)		(27,131)		84,661		—		(637,013)
		2,068,136		837		(142,638)		88,975		2,015,310

Non-current assets		2,164,477								2,219,461
Non-current liabilities		(96,341)								(204,151)


		Balance as of		Recognized in		Comprehensive				Balance as of
		December 31, 2023		income		Income		Others		December 31, 2024
Tax loss carryforward		937,416		173,232		(193)		(30,008)		1,080,447
Social contribution tax losses		241,084		52,565		—		—		293,649
Provision for tax, civil and labor liabilities		580,948		55,693		2		—		636,643
Benefits granted to employees		92,921		43		17,745		—		110,709
Other temporary differences		282,927		106,170		90,073		—		479,170
Deferred exchange variance		423,627		(153,604)		(1,598)		—		268,425
Provision for losses		93,400		38,310		174		—		131,884
Fair value adjustments on businesses acquired		(637,013)		22,578		(121,982)		—		(736,417)
		2,015,310		294,987		(15,779)		(30,008)		2,264,510

Non-current assets		2,219,461								2,427,648
Non-current liabilities		(204,151)								(163,138)


								Acquisition of
		Balance as of		Recognized in		Comprehensive		company		Balance as of
		December 31, 2024		income		Income		control (Note 3.4)		December 31, 2025
Tax loss carryforward		1,080,447		(1,665)		—		—		1,078,782
Social contribution tax losses		293,649		23,557		—		—		317,206
Provision for tax, civil and labor liabilities		636,643		(14,504)		—		826		622,965
Benefits granted to employees		110,709		(3,234)		(30,040)		—		77,435
Other temporary differences		479,170		(160,890)		(80,505)		(17,044)		220,731
Deferred exchange variance		268,425		(266,988)		217		25		1,679
Provision for losses		131,884		480,187		—		97		612,168
Fair value adjustments on businesses acquired		(736,417)		(43,045)		56,648		—		(722,814)
		2,264,510		13,418		(53,680)		(16,096)		2,208,152

Non-current assets		2,427,648								2,561,980
Non-current liabilities		(163,138)								(353,828)

Schedule of estimated recovery and reversal of income and social contributions tax assets and liabilities


		Assets				Liabilities
		2025		2024		2025		2024
2025		—		642,303		—		(3,438)
2026		458,983		374,285		(4,064)		(18,963)
2027		401,069		386,288		(30,686)		(2,908)
2028		415,979		229,836		(70,875)		(23,361)
2029		354,304		290,656		(65,016)		(19,558)
2030 on		931,645		504,280		(183,187)		(94,910)
		2,561,980		2,427,648		(353,828)		(163,138)