| 2.2.12 | Income tax and social contribution |
Tax expenses for the year comprise current and deferred income tax. Income tax is recognized in the statements of income, except the portion of deferred income tax related to items recognized directly in shareholders’ equity in other comprehensive income.
The current income tax is calculated at the nominal rates of each country, totaling 34% in Brazil, composed of 25% income tax and 9% social contribution on net income.
Deferred income tax is recognized on temporary differences arising between the tax and accounting bases of assets and liabilities.