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Income Taxes
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

Note 10. Income Taxes

 

The Company files income tax returns for TG, ES and ES Metals in the Republic of Colombia. GM&P, Componenti and ESW LLC are U.S. entities based in Florida subject to U.S. federal and state income taxes. Tecnoglass as well as the Company’s other subsidiaries in the Cayman Islands do not currently have any tax obligations.

 

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law. The OBBBA permanently establishes key elements of the Tax Cuts and Jobs Act, and also introduces modifications to certain international tax provisions. These provisions have various effective dates, some of which extended into 2027. The Company is assessing the effects that the OBBBA may have on the Company’s consolidated financial statements.

 

 

The components of income tax expense are as follows:

 

   2025   2024   2025   2024 
  

Three months ended

June 30,

  

Six months ended

June 30,

 
   2025   2024   2025   2024 
Current income tax                    
United States  $(8,286)  $(4,775)  $(11,920)  $(8,607)
Colombia   (10,329)   (9,774)   (21,881)   (13,582)
Panama   (1)   (5)   (5)   (6)
Total current income tax   (18,616)   (14,554)   (33,806)   (22,195)
                     
Deferred income Tax                    
United States   58    929    (1,355)   (249)
Colombia   410    1,132    (647)   (1,208)
Total deferred income tax   468    2,061    (2,002)   (1,457)
Total income provision  $(18,148)  $(12,493)  $(35,808)  $(23,652)
                     
Effective tax rate   29.2%   26.3%   29.3%   26.8%

 

The effective income tax rate for the three and six months ended June 30, 2025, of 29.7% and 29.6%, respectively, approximates the weighted average statutory rate of 29.1%. The effective income tax rate for the three and six months ended June 30, 2024, of 26.3% and 26.8% are below the weighted average statutory rate as the Colombian subsidiaries which bear a higher corporate income tax rate recorded a proportionally lower share of the consolidated income.