Current Tax and Deferred Taxes

12 Months Ended

Dec. 31, 2022

Current Tax and Deferred Taxes Disclosure [Abstract]

Current tax and deferred taxes

16. Current tax and deferred taxes:

(a) Current Tax:

The Bank and its subsidiaries at the end of each year, have constituted a First Category Income Tax Provision, which was determined based on current tax regulations, and has been reflected in the statement of financial position net of taxes to be recovered or payable, as applicable, as of December 31, 2022 and 2021, according to the following detail:

	2022			2021
	MCh$			MCh$
Income taxes		311,532			299,396
Less:
Monthly prepaid taxes (PPM)		(492,990	)		(182,903	)
Credit for training expenses		(2,216	)		(2,000	)
Other		(2,795	)		(2,210	)
Total tax (receivable) payable, net		(186,469	)		112,283
Tax Rate		27.00	%		27.00	%

	2022			2021
	MCh$			MCh$
Current tax assets		187,401			―
Current tax liabilities		(932	)		(112,283	)
Total tax receivable (payable), net		186,469			(112,283	)

(b) Income Tax:

The Bank’s tax expense recorded for the years ended December 31, 2022, 2021 and 2021 is detailed as follows:

	2022			2021		2020
	MCh$			MCh$		MCh$
Income tax expense:
Current year taxes		369,711			250,155		161,869
Tax from previous period		2,931			3,014		813
Subtotal		372,642			253,169		162,682
(Credit) charge for deferred taxes:
Origin and reversal of temporary differences		(91,001	)		20,163		(58,895	)
Subtotal		(91,001	)		20,163		(58,895	)
Others		7,568			2,637		(564	)
Net charge to income for income taxes		289,209			275,969		103,223

(c) Reconciliation of effective tax rate:

The following table reconciles the income tax rate to the effective rate applied to determine the Bank’s income tax expense as of December 31, 2022, 2021 and 2021:

	2022						2021						2020
	Tax rate %			MCh$			Tax rate %			MCh$			Tax rate %			MCh$
Income tax calculated on net income before tax		27.00			468,453			27.00			359,717			27.00			136,310
Additions or deductions (*)		(10.33	)		(179,245	)		(6.27	)		(83,587	)		(7.76	)		(39,195	)
Other		0.00			1			(0.01	)		(161	)		1.21			6,108
Effective rate and income tax expense		16.67			289,209			20.72			275,969			20.45			103,223

(*) The deductions of the tax rate for 2022, 2021 and 2020 mainly relate to permanent differences between tax and financial accounting rules.

(d) Effect of deferred taxes on income and equity:

The effects of deferred taxes on assets, liabilities and income accounts are detailed as follows:

	Balance as of		Effect						Balance as of		Effect					Balance as of
	January 1, 2021		Income			OCI			December 31, 2021		Income			OCI		December 31, 2022
	MCh$		MCh$			MCh$			MCh$		MCh$			MCh$		MCh$
Deferred tax assets:
Allowances for loan losses		217,361		(47,150	)		—			170,211		47,677			—		217,888
Personnel provisions		16,516		(1,929	)		—			14,587		5,924			—		20,511
Staff vacations		9,164		829			—			9,993		1,146			—		11,139
Accrued interest and indexation adjustments from past due loans		4,570		503			—			5,073		5,232			—		10,305
Staff severance indemnities provision		1,421		(67	)		(125	)		1,229		988			35		2,252
Provisions of credit card expenses		7,959		1,815			—			9,774		(628	)		—		9,146
Provisions of accrued expenses		14,083		(1,768	)		—			12,315		(486	)		—		11,829
Derivative instruments adjustments		1,361		102			—			1,463		(261	)		—		1,202
Adjustment for valuation and impairment of financial assets at fair value through OCI		—		270			2,774			3,044		—			804		3,848
Leasing		28,835		23,184			—			52,019		37,802			—		89,821
Other adjustments		37,488		11,401			—			48,889		(9,700	)		—		39,189
Total Deferred tax assets		338,758		(12,810	)		2,649			328,597		87,694			839		417,130
Deferred tax liabilities:
Depreciation of property and equipment and investment properties		17,256		(810	)		—			16,446		(5,509	)		—		10,937
Adjustment for valuation and impairment of financial assets at fair value through OCI		1,397		—			(1,397	)		—		—			—		—
Transitory assets		6,533		1,580			—			8,113		995			—		9,108
Derivative instruments adjustments		—		—			—			—		—			—		—
Accrued interest to effective rate		2,774		(342	)		—			2,432		4					2,436
Advance payment of lump-sum under union contracts		2,234		3,434			—			5,668		(2,980	)		—		2,688
Intangible assets amortization		5,503		—			—			5,503		—			—		5,503
Other adjustments		10,544		3,491			—			14,035		4,183			54		18,272
Total Deferred tax liabilities		46,241		7,353			(1,397	)		52,197		(3,307	)		54		48,944
Total Assets (Liabilities) tax, net		292,517		(20,163	)		4,046			276,400		91,001			785		368,186