Income tax and tax loss carryforwards

12 Months Ended

Dec. 31, 2023

Income tax and tax loss carryforwards [Abstract]

Income tax and tax loss carryforwards

20 Income tax and tax loss carryforwards

Income Tax

Results for the year

Grupo TMM and Subsidiaries incurred on combined tax losses for the years ended December 2023 and 2022, in the amounts of $156,078 and $129,041, respectively. Most of the companies that generated tax income for an amount of $130,301 amortized them with tax losses from prior years for an amount of $115,461. Income tax recognized in profit or loss corresponds to subsidiaries that generated taxable income of $14,840, $10,573 and $23,383, for 2023, 2022 and 2021, respectively.

The difference between taxable income and book income is due primarily to the net effect of the gain or loss on inflation recognized for tax purposes, the difference between tax and book amortization and depreciation, non-deductible expenses, as well as certain temporary differences reported in different periods for financial and tax purposes.

In accordance with the currently enacted Income Tax Law, the rate for 2021, 2022, 2023, and subsequent years is 30%.

The provision for income tax recognized in the statement of profit or loss for the years ended December 31, 2023, 2022 and 2021, is as follows:

	2023			2022			2021
Income tax	$	(4,452	)	$	(3,172	)	$	(7,015	)
Deferred income tax		24,652			32,763			28,158
Total income tax benefit	$	20,200		$	29,591		$	21,143

The reconciliation between the provision for income tax based on the statutory income tax rate and the provision recorded by the Company at December 31, 2023, 2022 and 2021, is as follows:

	2023			2022			2021
Loss before taxes	$	(4,742	)	$	(28,688	)	$	(269,197	)
Income tax		1,423			8,606			80,759
Increase (decrease) from:
Difference in depreciation and amortization		(20,110	)		(46,472	)		135,332
Revaluation surplus		(12,639	)		(18,051	)		(88,112	)
Materials and supplies		11,483			3,418			13
Inflationary and currency exchange effects on monetary assets and liabilities, net		(4,562	)		15,663			(11,643	)
Tax losses amortization		115,461			265,090			60,032
Provisions and allowance for doubtful accounts		(53,185	)		(165,542	)		(97,628	)
Difference between the tax and book value for the sale of assets		-			(7,277	)		(35,950	)
Difference between the tax and book value for the sale of shares of subsidiaries		(4,931	)		-			-
Non-deductible expenses		(12,740	)		(25,844	)		(21,660	)
Income tax benefit	$	20,200		$	29,591		$	21,143

The components of deferred tax liability at December 31, 2023 and 2022, are comprised as follows:

	2023			2022
Tax loss carryforwards	$	372,390		$	385,936
Inventories and provisions – net		73,788			27,374
Property and equipment and right-of-use asset		(578,654	)		(567,902	)
Total deferred tax liability	$	(132,476	)	$	(154,592	)

As of December 31, 2023, the Company’s Management carried out the evaluation of the amount of tax losses that will be recoverable and determined based on projections that the effect of the deferred tax asset determined in the year will be realized at 49.13% based on the information available at the date of issuance of the consolidated financial statements.

Tax loss carryforwards

As of December 31, 2023, Grupo TMM and its subsidiaries, report the following cumulative tax losses, which are restated applying the INPC in accordance with Mexican law.

Year in which the loss was incurred	Amounts		Year of expiration
2014	$	134,002		2024
2015		49,872		2025
2016		388,000		2026
2017		143,490		2027
2018		303,391		2028
2019		601,155		2029
2020		471,686		2030
2021		139,790		2031
2022		133,991		2032
2023		161,134		2033
	$	2,526,511