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 on December 23, 2014. A general corporate income Tax Rate applies at 25% and a CREE Tax based on taxable income 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 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:

	Three months ended June 30,				Six months ended June 30,
	2015		2014		2015		2014
Current income tax
Foreign	$	4,328	$	1,900	$	9,257	$	4,416
Deferred income tax
Foreign		(697)		363		(854)		818
Total Provision for Income tax	$	3,631	$	2,263	$	8,403	$	5,234

The Company’s effective tax rates were (47.1%) and 121% for the three and six month periods ended June 30, 2015. The Company’s effective tax rates were 84.7% and 545% for the three and six month periods ended June 30, 2014. The Company's effective tax rate for the three and six-month periods ended June 30, 2015 reflect non-deductible losses of $16,391 and $11,313 from the change in fair value of warrant liability as of June 30, 2015, compared with a non-deductible loss of $4,645 and $ 13,525 for the same periods ended June 30, 2014.