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Income tax

12 Months Ended

Dec. 31, 2024

Note 16 Income tax


Amounts in US$ ‘000	2024	2023
Current income tax liabilities	57,329	44,269
	57,329	44,269


Amounts in US$ ‘000	2024	2023	2022
Current income tax charge	(108,040)	(107,740)	(126,269)
Deferred income tax benefit (charge) (Note 17)	(37,752)	4,299	(44,205)
	(145,792)	(103,441)	(170,474)

The tax on the Group’s profit before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits of the consolidated entities as follows:


Amounts in US$ ‘000	2024	2023	2022
Profit before tax^(a)	242,171	214,509	394,909

Income tax calculated at domestic tax rates applicable to Profit in the respective countries (mainly Colombia)	(127,804)	(123,202)	(157,315)
Tax losses where no deferred income tax benefit is recognized	(3,912)	(6,918)	(2,832)
Effect of currency translation on tax base	(21,252)	36,691	(10,797)
Changes in the income tax rate^(b)	10,324	(8,853)	(3,820)
Write-down of deferred income tax benefits previously recognized^(c)	(2,371)	(3,895)	(2,938)
Previously unrecognized tax losses	—	632	9,067
Income tax on dividends^(d)	(1,335)	(2,595)	(3,038)
Non-taxable results^(e)	558	4,699	1,199
Income tax	(145,792)	(103,441)	(170,474)

(a)	Includes tax losses from non-taxable jurisdictions (Bermuda) of US$ 38,709,000, US$ 39,526,000 and US$ 53,005,000 in 2024, 2023 and 2022, respectively.

(b)	Income tax rate in Colombia includes a surcharge that varies depending on different Brent oil prices (see below).

(c)	Includes write-down of tax losses and other deferred income tax assets in Brazil and Chile where there is insufficient evidence of future taxable profits to offset them, in accordance with the expected future cash-flows as of December 31, 2024, 2023 and 2022.

(d)	Includes income tax payable in Spain due to dividends received from subsidiaries.

(e)	Includes non-deductible expenses and non-taxable gains in each jurisdiction.

Under current Bermuda law, the Company is not required to pay any taxes in Bermuda on income or capital gains. The Company has received an undertaking from the Minister of Finance in Bermuda that, in the event of any taxes being imposed, they will be exempt from taxation in Bermuda until March 2035. Additionally, Bermuda Pillar Two is applicable starting in 2025.

The statutory income tax rate in Colombia is 35%, though a tax surcharge is also applicable, impacting companies engaged in the extraction of crude oil like GeoPark. The tax surcharge varies from zero to 15%, depending on different Brent oil prices. The applicable surtax for 2024 was 10%, and therefore, the full applicable statutory income tax rate in Colombia for 2024 was 45%, except for income derived from gas production which is exempted of surtax.

Income tax rates in other countries where the Group operates (Ecuador, Brazil, Argentina and Spain) ranges from 25% to 35%. In Spain, there is a 95% exception on dividend and capital gains income.

There are no income tax consequences attached to the payment of dividends by the Group to its shareholders.

On May 23, 2023, the International Accounting Standards Board (IASB) issued International Tax Reform – Pillar Two Model Rules – Amendments to IAS 12 which clarify that IAS 12 applies to income taxes arising from tax law enacted or substantively enacted to implement the Pillar Two model rules published by the OECD, including tax law that implements Qualified Domestic Minimum Top-up Taxes. The Group has adopted these amendments. However, they are not yet applicable for the current reporting year as the Group’s consolidated revenue is currently below the threshold of EUR 750,000,000 (equivalent to US$ 810,000,000).

The Group has tax losses available which can be utilized against future taxable profit in the following countries:


Amounts in US$ ‘000	2024	2023	2022
Colombia	5,646	—	4,837
Brazil ^(a)	23,587	26,808	26,736
Chile^(a) ^(c)	—	313,409	323,929
Argentina ^(b)	12,689	9,981	24,065
Spain ^(a)	—	6,936	7,205
Total tax losses as of December 31	41,922	357,134	386,772

a)	Taxable losses have no expiration date.

b)	Tax losses accumulated as of December 31, 2024, are: US$ 735,000, US$ 1,800,000, US$ 726,000, US$ 1,865,000 and US$ 7,563,000 expiring in 2025, 2026, 2027, 2028 and 2029, respectively.

c)	The Chilean business was divested on January 18, 2024.

As of December 31, 2024, deferred income tax assets in respect of tax losses in Argentina and a portion of tax losses in Brazil have not been recognized as there is insufficient evidence of future taxable profits to offset them.