INCOME TAX AND SOCIAL CONTRIBUTION (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax And Social Contribution

Schedule of income tax and social contribution income expense


					Consolidated
	12/31/2025		12/31/2024		12/31/2023
Income tax and social contribution income (expense)
Current	(899,460)		(1,300,719)		(1,036,262)
Deferred	1,094,263		1,305,927		403,544
Global Minimum taxation - Pillar 2	(22,011)
Total	172,792		5,208		(632,718)

Schedule of reconciliation of the Company's income tax and social contribution expenses


					Consolidated
	12/31/2025		12/31/2024		12/31/2023
Profit/(Loss) before income tax and social contribution	(1,679,518)		(1,543,349)		1,035,367
Tax rate	34%		34%		34%
Income tax and social contribution at combined statutory rate	571,036		524,739		(352,025)
Adjustment to reflect the effective rate:
Equity in results of affiliated companies⁽¹⁾	1,014,282		188,205		178,978
Effect of differentiated rates and tax-exempt profits in investments	(1,209,761)		(814,713)		(181,409)
Transfer Price Adjustment and Profits Abroad	(70,837)		(67,580)		(91,883)
Income taxes and social contribution on foreign profit	7,172		10,200		131,836
Indebtdness limit	(10,384)
Tax incentives	65,013		102,087		71,756
Interest on equity	87,912		79,282		47,315
Recognition/(reversal) of tax credits	(64,690)		(62,088)		(337,239)
Reversal for deferred income tax and social contribution credit	(188,975)
Other permanent deductions (add-backs)	(27,976)		45,076		(100,047)
Income tax and social contribution in net income for the period	172,792		5,208		(632,718)
Effective tax rate	10%		0%		61%

(1)

These amounts reflect the effect of neutralizing the gain calculated on CSN’s sale of MRS's shares to its subsidiary CSN Mineração. As described in Note 10.a, this transaction generated an accounting gain at the parent company, however, since this transaction was performed under common control, this amount was neutralized through the investee’s unrealized profit.

Schedule of deferred income tax and social contribution


		Consolidated
		12/31/2025		12/31/2024
Deferred
Income tax losses		4,578,638		3,896,856
Social contribution tax losses		1,585,078		1,336,041
Temporary differences		347,208		1,571,100
Tax, social security, labor, civil and environmental provisions		391,345		559,621
Estimated losses on assets		375,880		267,768
Gains/(Losses) on financial assets		296,640		565,250
Actuarial Liabilities (Pension and Health Plan)		141,088		165,418
Provision for consumption and services		22,911		4,933
Cash Flow Hedge and Unrealized Exchange Variations		886,799		2,014,231
(Gain) on loss of control of Transnordestina		(224,096)		(224,096)
Fair Value SWT/CBL Acquisition		(149,490)		(149,489)
Business combination		(1,462,402)		(1,425,853)
Unrealized results – transactions between related parties		783,127
(Losses)/Estimated reversal for deferred income tax and social contribution credits ⁽¹⁾		(188,975)
Others ⁽²⁾		(525,619)		(206,683)
Total		6,510,924		6,803,997

Total Deferred Assets		7,100,375		7,345,326
Total Deferred Liabilities		(589,451)		(541,329)
Total Deferred		6,510,924		6,803,997

(1)	Reversal of Assets: In 2025, the Company fully reversed the deferred tax assets at the subsidiaries Prada and Mipe. Write-off is based on IAS 12, due to the absence of the expected generation of future taxable profits that will allow these credits to be recovered.

(2)

The item 'Other' comprises the tax effects on temporary differences, mainly comprising PLR provisions and interest capitalized in subsidiaries (notably CSN and CMIN, which represent 28% of the balance). In compliance with the recoverability criteria set forth in CPC 32 (IAS 12), Management chose not to establish deferred assets for the Company’s Prada, ERSA and FTL facilities (which represents 43% of the identified amount), given the absence of convincing evidence of the generation of taxable profit over the short term for these specific operations.

Schedule of estimated recovery of deferred tax assets


	Consolidated
2026	1,923,153
2027	(382,208)
2028	200,491
2029	368,890
2029 and beyond	4,990,049
Deferred asset	7,100,375
Deferred liabilities - Parent Company
Net deferred asset	7,100,375
Deferred liabilities - subsidiaries
Net deferred asset	7,100,375

Schedule of changes in deferred tax and social contribution


	Consolidated
Balance at January 1, 2023	4,878,768
Recognized in profit and loss	403,544
Recognized in equity	(559,050)
Use of tax credit in installment program	(445)
Reverse incorporation	6,815
Balance at January 1, 2024	4,729,632
Recognized in profit and loss	1,305,927
Recognized in equity	769,162
Use of tax credit in installment program	(724)
Balance at December 31, 2024	6,803,997
Recognized in profit and loss	1,094,263
Recognized in equity	(1,387,336)
Balance at December 31, 2025	6,510,924

Schedule of income tax and social contribution recognized in equity

					Consolidated
	12/31/2025		12/31/2024		12/31/2023
Income tax and social contribution
Actuarial gains on defined benefit pension plan	50,702		76,876		83,436
Exchange differences on translating foreign operations	(325,350)		(325,350)		(325,350)
Cash flow hedge	1,590,839		2,906,859		1,030,432
Gain on sale of shares	(1,158,102)		(1,158,102)
	158,089		1,500,283		788,518