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Note 7 - Income Tax (Tables)
 12 Months Ended
Dec. 31, 2024
Major components of tax expense (income) [abstract]  
Summary of Income Tax Expense

The table below presents the components of the income tax expense (in thousands):

 

 

 

Year ended December 31,

 

 

 

2022

 

 

2023

 

 

2024

 

Current income taxes

 

$

(7,293

)

 

$

(7,227

)

 

$

(10,757

)

Deferred income taxes

 

 

(1,542

)

 

 

531

 

 

 

(6,884

)

Income tax expense

 

$

(8,835

)

 

$

(6,697

)

 

$

(17,642

)
Reconciliation of Differences Between Expected Income Tax Expense Expressed as Accounting Profit Multiplied by Corporate Income Tax Rate and Actual Income Tax Expense With Opera being headquartered in Norway and with a large share of the Group’s income being recognized by Opera Norway AS, a subsidiary domiciled in Norway, the reconciliation below explains the differences between the expected income tax expense expressed as the accounting profit multiplied by the corporate income tax rate in Norway of 22%, and Opera’s actual income tax expense (in thousands, except for percentages):

 

 

 

Year ended December 31,

 

 

 

2022

 

 

2023

 

 

2024

 

 

 

Amount

 

 

Effective tax rate (1)

 

 

Amount

 

 

Effective tax rate (1)

 

 

Amount

 

 

Effective tax rate (1)

 

Income before income taxes

 

$

23,870

 

 

 

 

 

$

159,997

 

 

 

 

 

$

98,412

 

 

 

 

Tax using the Norwegian tax rate of 22%

 

 

(5,251

)

 

 

22.0

%

 

 

(35,199

)

 

 

22.0

%

 

 

(21,651

)

 

 

22.0

%

Differences between computed tax rate and effective tax rate due to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Different tax rates of subsidiaries operating in other jurisdictions

 

 

1,408

 

 

 

(5.9

)

 

 

5,346

 

 

 

(3.3

)

 

 

7,945

 

 

 

(8.1

)

Changes in tax rates

 

 

21

 

 

 

(0.1

)

 

 

(64

)

 

 

—

 

 

 

2

 

 

 

—

 

Non-deductible expenses

 

 

(3,585

)

 

 

15.0

 

 

 

(4,588

)

 

 

2.9

 

 

 

(3,861

)

 

 

3.9

 

Tax-exempt income

 

 

480

 

 

 

(2.0

)

 

 

23,149

 

 

 

(14.5

)

 

 

2,986

 

 

 

(3.0

)

Foreign withholding taxes

 

 

299

 

 

 

(1.3

)

 

 

270

 

 

 

(0.2

)

 

 

(138

)

 

 

0.1

 

Recognition and derecognition of deferred tax assets

 

 

(2,027

)

 

 

8.5

 

 

 

4,848

 

 

 

(3.0

)

 

 

(1,554

)

 

 

1.6

 

Changes in estimates related to prior years

 

 

549

 

 

 

(2.3

)

 

 

(67

)

 

 

—

 

 

 

48

 

 

 

—

 

Movements in exchange rates

 

 

(729

)

 

 

3.1

 

 

 

(391

)

 

 

0.2

 

 

 

(1,419

)

 

 

1.4

 

Income tax expense at effective tax rate

 

$

(8,835

)

 

 

37.0

%

 

$

(6,697

)

 

 

4.2

%

 

$

(17,642

)

 

 

17.9

%

_______________

(1)
Percentages have been rounded for presentation purposes and may differ from unrounded results.
Reconciliation of Deferred Taxes by Type of Temporary Differences

The following table shows a reconciliation of deferred taxes by type of temporary differences (in thousands):

 

 

 

Property and equipment

 

 

Intangible assets

 

 

Trade receivables

 

 

Equity awards

 

 

Intra-group interest expenses carried forward

 

 

Tax losses carried forward

 

 

Other

 

 

Total

 

Net deferred tax asset (liability) as of January 1, 2023

 

$

83

 

 

$

(20,549

)

 

$

300

 

 

$

—

 

 

$

8,066

 

 

$

5,399

 

 

$

822

 

 

$

(5,878

)

Income (expense) recognized in the Statement of Operations

 

 

(121

)

 

 

571

 

 

 

67

 

 

 

420

 

 

 

(418

)

 

 

(152

)

 

 

163

 

 

 

531

 

Expense recognized in the Statement of Comprehensive Income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(6

)

 

 

(6

)

Deferred tax benefit recognized in equity

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,674

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,674

 

Net deferred tax asset (liability) as of December 31, 2023

 

 

(38

)

 

 

(19,978

)

 

 

367

 

 

 

4,094

 

 

 

7,648

 

 

 

5,247

 

 

 

979

 

 

 

(1,679

)

Income (expense) recognized in the Statement of Operations

 

 

(1,188

)

 

 

568

 

 

 

(346

)

 

 

(401

)

 

 

(1,497

)

 

 

(4,081

)

 

 

61

 

 

 

(6,884

)

Expense recognized in the Statement of Comprehensive Income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(55

)

 

 

(55

)

Deferred tax benefit recognized in equity

 

 

—

 

 

 

—

 

 

 

—

 

 

 

993

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

993

 

Net deferred tax asset (liability) as of December 31, 2024

 

$

(1,226

)

 

$

(19,410

)

 

$

21

 

 

$

4,686

 

 

$

6,151

 

 

$

1,166

 

 

$

985

 

 

$

(7,626

)
Deferred Tax Assets and Liabilities

After offsetting deferred tax assets and liabilities within the same tax jurisdiction, the following amounts are presented in the Statement of Financial Position (in thousands):

 

 

 

As of December 31,

 

 

 

2023

 

 

2024

 

Deferred tax assets

 

$

1,133

 

 

$

1,063

 

Deferred tax liabilities

 

$

2,813

 

 

$

8,689