Income Taxes

6 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Note 9. Income Taxes

The Company files income tax returns for TG, ES and ES Metals in the Republic of Colombia. On December 28, 2018, a tax reform was implemented in Colombia which decreased the corporate income tax rate to 33% for fiscal year 2019, 32% for fiscal year 2020, 31% for fiscal year 2021 and 30% for fiscal year 2022, in comparison with a tax rate of 37% for 2018.

GM&P, Componenti and ESW LLC are U.S. entities based in Florida subject to U.S. federal and state income taxes. The estimated combined state and federal income tax rate is estimated at a rate of 26.5% based on the recently enacted U.S. Tax Reform. Tecnoglass Inc. as well as all the other subsidiaries in the Cayman Islands do not currently have any tax obligations.

The components of income tax expense are as follows:

	Three months ended June 30,						Six months ended June 30,
	2019			2018			2019			2018
Current income tax
United States	$	(903	)	$	1,129		$	(1,415	)	$	722
Colombia		(4,338	)		(317	)		(7,758	)		(2,522	)
		(5,241	)		812			(9,173	)		(1,800	)
Deferred income Tax
United States		957			(992	)		1,126			(1,161	)
Colombia		307			1,647			(809	)		(965	)
		1,264			655			317			(2,126	)
Total income tax (provision) benefit	$	(3,977	)	$	1,467		$	(8,856	)	$	(3,926	)
Effective tax rate		(34	%)		27	%		(37	%)		37	%

The Company’s weighted average statutory income tax rate is 33%.