Note 7. Income Taxes

The Company files income tax returns for TG and ES in the Republic of Colombia. Colombia’s Tax Statute was reformed in December 2014. A general corporate income Tax Rate applies at 25% and a CREE Tax based on taxable income also applies at a rate of 9% to certain taxpayers including the Company. Prior to the reform, the CREE Tax would only apply up to tax years 2015. The reform makes the CREE tax rate of 9% permanent and an additional CREE Surtax will also apply for the years 2015 through 2018 at varying rates.

The following table summarizes income tax rates under the tax reform law:

	2015			2016			2017			2018			2019
Income Tax		25	%		25	%		25	%		25	%		25	%
CREE Tax		9	%		9	%		9	%		9	%		9	%
CREE Surtax		5	%		6	%		8	%		9	%		-
Total Tax on Income		39	%		40	%		42	%		43	%		34	%

The components of income tax expense (benefit) are as follows:

	2015			2014
Current income tax
Foreign	$	4,929		$	2,423
Deferred income tax
Foreign	$	(157)		$	548
Total Provision for Income tax		4,772			2,971
Effective income tax rate		33.1	%		-173	%

The Company's lower effective tax rate for the three-month periods ended March 31, 2015 and 2014 reflect non-taxable revenues of $5,078 from the change in fair value of warrant liability as of March 31, 2015, compared with a non-deductible loss of $8,880 for the three month period ended March 31, 2014.