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INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2019
Income Taxes [Abstract]  
Components of tax expense
 
 
For the year ended December 31,
 
 
2019
 
2018
 
2017
Tax expense:
 
 

 
 

 
 

     Current tax expense
 
(19,327
)
 
(23,324
)
 
(14,053
)
     Deferred tax gain (1)
 
4,310

 
7,456

 
5,972

TOTAL INCOME TAX EXPENSE
 
(15,017
)
 
(15,868
)
 
(8,081
)


(1) 
As of December 31, 2017, includes 1,004 of deferred tax gain related to changes in tax rates.
Reconciliation of the statutory tax rate to the effective tax rate
The following table provides a reconciliation of the statutory tax rate to the effective tax rate. As the operations of the Argentine subsidiaries are the most significant source of net taxable income of the Company, the following reconciliation has been prepared using the Argentine tax rate: 
 
 
For the year ended December 31,
 
 
2019
 
2018
 
2017
Profit before income tax
 
69,032

 
67,464

 
38,544

Tax rate (note 3.7.1.1)
 
30
%
 
30
%
 
35
%
Income tax expense
 
(20,710
)
 
(20,239
)
 
(13,490
)
 
 
 
 
 
 
 
Permanent differences
 
 

 
 

 
 

Argentine Software Promotion Regime (note 3.7.1.1)
 
3,256

 
6,844

 
3,541

Effect of different tax rates of subsidiaries operating in countries other than Argentina
 
7,996

 
4,352

 
2,019

Non-deductible expenses
 
925

 
1,130

 
1,187

Tax loss carry forward not recognized
 
(2,402
)
 
(1,462
)
 
(374
)
Exchange difference
 
(4,365
)
 
(8,777
)
 
(860
)
Other
 
283

 
2,284

 
(104
)
INCOME TAX EXPENSE RECOGNIZED IN PROFIT AND LOSS
 
(15,017
)
 
(15,868
)
 
(8,081
)
Deferred tax assets
The roll forward of the deferred tax assets/(liabilities) presented in the consolidated financial position is as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
 
Opening
 
Recognised in
 
Recognised in
 
Recognised
 
Acquisitions/
 
Additions from
 
Closing
 
 
balance
 
profit or loss (*)
 
other comprehensive
 
directly in equity
 
disposals
 
business combinations
 
balance
 
 
 
 
 
 
income
 
 
 
 
 
 
 
 
Deferred tax assets/(liabilities) in relation to:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based compensation plan
 
4,731

 
718

 
—

 
9,864

 
(3,726
)
 
—

 
11,587

Provision for vacation and bonus
 
6,624

 
(275
)
 
—

 
—

 
—

 
184

 
6,533

Intercompany trade payables
 
2,207

 
1,346

 
—

 
—

 
—

 
—

 
3,553

Property and equipment
 
716

 
447

 
—

 
—

 
—

 
—

 
1,163

Goodwill
 
(1,005
)
 
(747
)
 
—

 
—

 
—

 
—

 
(1,752
)
Contingencies
 
546

 
168

 
—

 
—

 
—

 
—

 
714

Other assets
 
—

 
(389
)
 
—

 
—

 
—

 
(639
)
 
(1,028
)
Others
 
1,236

 
1,795

 
—

 
—

 
—

 
—

 
3,031

Subtotal
 
15,055

 
3,063

 
—

 
9,864

 
(3,726
)
 
(455
)
 
23,801

Loss carryforward
 
1,861

 
876

 
(698
)
 
—

 
—

 
—

 
2,039

TOTAL
 
16,916

 
3,939

 
(698
)
 
9,864

 
(3,726
)
 
(455
)
 
25,840


(*) Includes foreign exchange loss of 371.

 
 
 
 
 
 
 
 
 
 
 
 
 
2018

Opening
 
Recognised in
 
Recognised in
 
Recognised
 
Acquisitions/
 
Closing


balance
 
profit or loss (*)
 
other comprehensive
 
directly in equity
 
disposals
 
balance



 

 
income
 

 

 

Deferred tax assets/(liabilities) in relation to:
 
 
 
 
 
 
 
 
 
 
 
 
Share-based compensation plan
 
5,772

 
915

 
—

 
2,367

 
(4,323
)
 
4,731

Provision for vacation and bonus
 
1,309

 
5,315

 
—

 
—

 
—

 
6,624

Intercompany trade payables
 
3,126

 
(919
)
 
—

 
—

 
—

 
2,207

Property and equipment
 
756

 
(40
)
 
—

 
—

 
—

 
716

Goodwill
 
(479
)
 
(526
)
 
—

 
—

 
—

 
(1,005
)
Contingencies
 
—

 
546

 
—

 
—

 
—

 
546

Others
 
297

 
939

 
—

 
—

 
—

 
1,236

Subtotal
 
10,781

 
6,230

 
—

 
2,367

 
(4,323
)
 
15,055

Loss carryforward
 
2,405

 
321

 
(165
)
 
—

 
(700
)
 
1,861

TOTAL
 
13,186

 
6,551

 
(165
)
 
2,367

 
(5,023
)
 
16,916


(*) Includes foreign exchange loss of 905.
 
 
As of December 31,
 
 
2019
 
2018
Share-based compensation plan
 
11,587

 
4,731

Provision for vacation and bonus
 
6,533

 
6,624

Intercompany trade payables
 
3,553

 
2,207

Property and equipment
 
1,163

 
716

Goodwill
 
(1,752
)
 
(1,005
)
Contingencies
 
714

 
546

Others
 
3,031

 
1,236

Loss carryforward (1)
 
2,039

 
1,861

TOTAL DEFERRED TAX ASSETS
 
26,868

 
16,916


 
 
As of December 31,
 
 
2019
 
2018
Other Assets
 
(1,028
)
 
—

TOTAL DEFERRED TAX LIABILITIES
 
(1,028
)
 
—

 
(1) 
As of December 31, 2019 and 2018, the detail of the loss carryforward is as follows:
 
 
2019
 
2018
Company
 
Loss carryforward
 
Expiration date
 
Loss carryforward
 
Expiration date
Globant S.A.
 
—



 
547

 
does not expire
Dynaflows S.A.
 
138


2024
 
96

 
2020
Dynaflows S.A.
 
53


2023
 
—

 

Dynaflows S.A.
 
4


2022
 
—

 

IAFH Global S.A
 
594


2024
 
—

 

Globant Brasil Consultoría Ltda. (2)
 
767


does not expire
 
887

 
does not expire
Sistemas UK Limited
 
—


—
 
116

 
does not expire
We Are London Limited
 
163


does not expire
 
215

 
does not expire
Difier S.A
 
3


does not expire
 
—

 

Sistemas Globales S.A.
 
25


2023
 
—

 

Avanxo S.A.
 
129


2024
 
—

 

BSF S.A.
 
140


2024
 
—

 

Avanxo - Sucursal del Perú
 
20


2022
 
—

 

Globant France S.A.S.
 
3


does not expire
 
—

 

 
 
2,039

 
 
 
1,861

 
 

(2) 
The amount of the carryforward that can be utilized for Globant Brasil Consultoría Ltda. is limited to 30% of taxable income in each carryforward year.