Income Tax (Tables)

12 Months Ended

Dec. 31, 2020

Analysis of deferred tax assets and liabilities

As of December 31, 2020, and 2019, the analysis of deferred tax assets and deferred tax liabilities is as follows:

Deferred tax assets	Balance as of December 31,
from	2020		2019
Net operating loss carryforwards (“NOL´s”)		497,184		546,705
Temporary tax non-deductible expenses		115,063		95,847
Derivatives financial instruments		83,847		86,096
Other		3,021		-
Total deferred tax assets		699,115		728,648

Deferred tax liabilities	Balance as of December 31,
from	2020		2019
Accelerated tax amortization		652,600		682,800
Other difference between tax and book value of assets		154,969		137,192
Other		179		9,686
Total deferred tax liabilities		807,748		829,678

Consolidated balance sheets classifications

After offsetting deferred tax assets and deferred tax liabilities, where applicable, the resulting net amounts presented on the consolidated balance sheet are as follows:

Consolidated balance sheets classifications	Balance as of December 31,
	2020		2019
Deferred tax assets		152,290		147,966
Deferred tax liabilities		260,923		248,996
Net deferred tax liabilities		108,633		101,030

Movements in deferred tax assets and liabilities

The movements in deferred tax assets and liabilities during the years ended December 31, 2020 and 2019 were as follows:

Deferred tax assets	Amount
As of December 31, 2018		136,066
Increase/(decrease) through the consolidated income statement		5,809
Increase/(decrease) through other consolidated comprehensive income (equity)		6,147
Other movements		(56	)
As of December 31, 2019		147,966

Increase/(decrease) through the consolidated income statement		6,003
Increase/(decrease) through other consolidated comprehensive income (equity)		(8,698	)
Other movements		7,019
As of December 31, 2020		152,290

Deferred tax liabilities	Amount
As of December 31, 2018		211,000
Increase/(decrease) through the consolidated income statement		31,678
Business combinations (Note 5)		2,539
Other movements		3,779
As of December 31, 2019		248,996

Increase/(decrease) through the consolidated income statement		9,675
Other movements		2,252
As of December 31, 2020		260,923

Income tax expense

Details of income tax for the years ended December 31, 2020, 2019 and 2018 are as follows:

	For the twelve-month period ended December 31,
Item	2020			2019			2018
Current tax		(21,205	)		(5,081	)		(468	)
Deferred tax		(3,672	)		(25,869	)		(42,191	)
- relating to the origination and reversal of temporary differences		(3,672	)		(25,869	)		(42,191	)
Total income tax expense		(24,877	)		(30,950	)		(42,659	)

Effective income tax rate reconciliation

The reconciliation between the theoretical income tax resulting from applying an average statutory tax rate to profit before income tax and the actual income tax expense recognized in the consolidated income statements for the years ended December 31, 2020, 2019 and 2018, are as follows:

	For the year ended December 31,
Concept	2020			2019			2018
Consolidated income before taxes		41,751			105,558			97,928
Average statutory tax rate		25	%		25	%		30	%
Corporate income tax at average statutory tax rate		(10,438	)		(26,390	)		(29,378	)
Income tax of associates, net		128			1,808			1,639
Differences in statutory tax rates		(94	)		(7,076	)		752
Unrecognized NOLs and deferred tax assets		(37,183	)		(14,161	)		(22,972	)
Purchase of Liberty´s equity interest in Solana		36,352			-			-
Other permanent differences		(8,895	)		11,220			5,385
Other non-taxable income/(expense)		(4,747	)		3,649			1,915
Corporate income tax		(24,877	)		(30,950	)		(42,659	)