| Income Taxes, Social Contribution and Other Taxes |
7.
Income Taxes, Social Contribution and Other Taxes
| (a) | Movements of deferred tax assets |
Deferred tax assets
| Schedule of deferred tax assets |
|
|
|
| |
As of December 31, |
| |
2025 |
2024 |
2023 |
| Initial amount |
831,698 |
687,362 |
588,090 |
| Provision/ reversal |
615,621 |
144,336 |
99,272 |
| Deferred tax assets |
1,447,319 |
831,698 |
687,362 |
Deferred tax liabilities
| Schedule of deferred tax liabilities |
|
|
|
| |
As of December 31, |
| |
2025 |
2024 |
2023 |
| Initial amount |
206,860 |
194,284 |
184,182 |
| Provision/ reversal |
176,014 |
12,576 |
10,102 |
| Deferred tax liabilities |
382,874 |
206,860 |
194,284 |
| (b) | Income tax and social contribution expense |
| Schedule of income tax and social contribution expense |
|
|
|
| |
As of December 31, |
| |
2025 |
2024 |
2023 |
| Income tax in profit or loss |
(700,567) |
(433,638) |
(221,525) |
| Deferred taxes: |
|
|
|
| Temporary differences |
410,359 |
195,590 |
122,295 |
| Tax loss and negative calculation basis |
- |
(8,607) |
(56,347) |
| Total |
(290,208) |
(246,655) |
(155,577) |
| (c) | Estimate of tax credit realization |
| Schedule of estimate of tax credit realization |
|
|
| |
As of December 31, |
| Expected income tax and social contribution, calculated with statutory rate |
2025 |
2024 |
| Year 1 |
640,419 |
347,304 |
| Year 2 |
221,450 |
107,199 |
| Year 3 |
158,845 |
110,136 |
| Year 4 |
131,901 |
73,084 |
| Year 5 |
111,304 |
71,347 |
| Year 6 – 10 |
183,399 |
122,628 |
| Total |
1,447,319 |
831,698 |
The net balance of the Group's tax credit
as of December 31, 2025, was composed of R$1,447,319 related to deferred tax assets and R$382,874 related to deferred tax liabilities.
| (d) | Effective tax rate reconciliation |
| Schedule of effective tax rate reconciliation |
|
|
|
| |
As of December 31, |
| |
2025 |
2024 |
2023 |
| Net income before taxes |
1,336,821 |
1,041,011 |
581,635 |
| |
|
|
|
| Expected income tax and social contribution, at statutory rates |
(492,616) |
(379,283) |
(207,989) |
| Interest on equity (1) |
106,797 |
92,610 |
37,186 |
| Permanent additions and exclusions |
(2,582) |
11,386 |
1,656 |
| Tax incentive - Hunger Prevention Program and donations |
24,318 |
7,229 |
6,457 |
| Extemporaneous credit |
- |
21,603 |
7,631 |
| Others |
72,954 |
(200) |
(518) |
| Income tax expense |
(291,129) |
(246,655) |
(155,577) |
| The effective income tax rate |
22% |
24% |
27% |
(1) Interest on equity refers to a profit distribution to shareholders
and is deductible by the company for corporate income tax (IRPJ) and social contribution on net profit (CSLL) purposes.
| (e) | Breakdown deferred tax assets and liabilities |
| Schedule of breakdown deferred tax assets and liabilities |
|
|
| |
December 31, 2025 |
| |
Deferred Tax Assets |
Deferred Tax Liabilities |
| Provisions |
148,247 |
- |
| Allowance for expected credit losses |
1,100,448 |
(98,816) |
| Lease liabilities |
131,854 |
(120,365) |
| Other temporary differences |
66,770 |
(163,693) |
| Total |
1,447,319 |
(382,874) |
| |
December 31, 2024 |
| |
Deferred Tax Assets |
Deferred Tax Liabilities |
| Provisions |
141,076 |
- |
| Impairment allowance for loans and advances to customers |
561,442 |
(89,117) |
| Fair value of financial instruments held for trading |
21 |
- |
| Net operating losses |
3,107 |
- |
| Lease liabilities |
116,078 |
(105,465) |
| Other temporary differences |
9,974 |
(12,278) |
| Total |
831,698 |
(206,860) |
|