Income tax benefit (expense)

12 Months Ended

Dec. 31, 2019



(in thousands of USD)	2019		2018		2017
Current tax
Current period	(1,066	)	(37	)	(85	)
Total current tax	(1,066	)	(37	)	(85	)

Deferred tax
Recognition of unused tax losses/(use of tax losses)	474		(195	)	1,473
Other	(10	)	(6	)	(30	)
Total deferred tax	464		(201	)	1,443

Total tax benefit/(expense)	(602	)	(238	)	1,358



Reconciliation of effective tax	2019				2018				2017
Profit (loss) before tax			112,832				(109,832	)			25

Tax at domestic rate	(29.58	)%	(33,376	)	(29.58	)%	32,488		(33.99	)%	(8	)
Effects on tax of :
Tax exempt profit / loss			317				(50	)			499
Tax adjustments for previous years			34				9				10
Loss for which no DTA (*) has been recognized			(26	)			(1,037	)			—
Non-deductible expenses			(538	)			(962	)			(710	)
Use of previously unrecognized tax losses and tax credits			4,066				—				7,146
Tonnage Tax regime			24,534				(33,602	)			(13,918	)
Effect of share of profit of equity-accounted investees			2,482				4,690				10,175
Effects of tax regimes in foreign jurisdictions			1,905				(1,774	)			(1,836	)
Total taxes	(0.53	)%	(602	)	0.22	%	(238	)	5,430.01	%	1,358

In application of an IFRIC agenda decision on ‘IAS 12 Income taxes’, tonnage tax is not accounted for as income taxes in accordance with IAS 12 and is not presented as part of income tax expense in the consolidated statement of profit or loss but

has been shown as an administrative expense under the heading General and administrative expenses. The amount paid for tonnage tax in the year ended December 31, 2019 was $1.3 million (see Note 5).

* Deferred Tax Asset

Deferred tax assets and liabilities

Recognized deferred tax assets and liabilities

Deferred tax assets and liabilities are attributable to the following:



(in thousands of USD)	ASSETS		LIABILITIES		NET
Employee benefits	37		—		37
Unused tax losses & tax credits	2,218		—		2,218
	2,255		—		2,255
Offset	—		—
Balance at December 31, 2018	2,255		—

Employee benefits	26		—		26
Unused tax losses & tax credits	23,790		—		23,790
Unremitted earnings	—		(21,101	)	(21,101	)
	23,816		(21,101	)	2,715
Offset	(21,101	)	21,101
Balance at December 31, 2019	2,715		—

Unrecognized deferred tax assets and liabilities

Deferred tax assets and liabilities have not been recognized in respect of the following items:



(in thousands of USD)	December 31, 2019				December 31, 2018
	ASSETS		LIABILITIES		ASSETS		LIABILITIES
Deductible temporary differences	290		—		274		—
Taxable temporary differences	—		(12,162	)	8		(12,162	)
Tax losses & tax credits	59,772		—		86,568		—
	60,062		(12,162	)	86,850		(12,162	)
Offset	(12,162	)	12,162		(12,162	)	12,162
Total	47,900		—		74,688		—

The unrecognized deferred tax assets in respect of tax losses and tax credits relates to tax losses carried forward, investment deduction allowances and excess dividend received deduction. Tax losses and tax credits have no expiration date.

The decrease in unrecognized deferred tax assets mainly relates to a partial use of investment deduction allowances in 2019.

A deferred tax asset ('DTA') is recognized for unused tax losses and tax credits carried forward, to the extent that it is probable that future taxable profits will be available. The Group considers future taxable profits as probable when it is more likely than not that taxable profits will be generated in the foreseeable future. When determining whether probable future taxable profits are available the probability threshold is applied to portions of the total amount of unused tax losses or tax credits, rather than the entire amount.

Given the nature of the tonnage tax regime, the Group has a substantial amount of unused tax losses and tax credits for which no future taxable profits are probable and therefore no DTA has been recognized.

No deferred tax liabilities have been recognized for temporary differences related to vessels for which the Group expects that the reversal of these differences will not have a tax effect.

In December 2017, changes to the Belgian corporate income tax rate were enacted, lowering the rate to 29.58% as from 2018 and to 25% from 2020. These changes have been reflected in the calculation of the amounts of deferred tax assets and liabilities in respect of Belgian Group entities as at December 31, 2019 and December 31, 2018.

Movement in deferred tax balances during the year



(in thousands of USD)	Balance at Jan 1, 2017	Recognized in income		Recognized in equity	Translation differences		Balance at Dec 31, 2017
Provisions	31	(32	)	—	2		1
Employee benefits	37	2		—	5		44
Unused tax losses & tax credits	896	1,473		—	73		2,442
Total	964	1,443		—	80		2,487

	Balance at Jan 1, 2018	Recognized in income		Recognized in equity	Translation differences		Balance at Dec 31, 2018
Provisions	1	(1	)	—	—		—
Employee benefits	44	(5	)	—	(2	)	37
Unused tax losses & tax credits	2,442	(195	)	—	(29	)	2,218
Total	2,487	(201	)	—	(31	)	2,255

	Balance at Jan 1, 2019	Recognized in income		Recognized in equity	Translation differences		Balance at Dec 31, 2019
Provisions	—	—		—	—		—
Employee benefits	37	(10	)	—	(1	)	26
Unused tax losses & tax credits	2,218	474		—	(3	)	2,689
Total	2,255	464		—	(4	)	2,715