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Note 23 - Income Taxes | 12 Months Ended
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Dec. 31, 2019
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | 23— INCOME TAXES 23 - 1 Income / (Loss) before income taxes
Income / (loss) before income taxes is comprised of the following: |  | 2019 |  | 2018 |  | 2017
France |  |  | 1,803 |  |  |  | 1,687 |  |  |  | 1,003 |
Other countries |  |  | 388 |  |  |  | (1,667 | ) |  |  | (1,296 | )
Total |  |  | 2,191 |  |  |  | 20 |  |  |  | (293 | )
23 - 2 Income tax (expense)/ benefit
Income tax (expense)/benefit consists of the following: |  | 2019 |  | 2018 |  | 2017
Current income tax expense: |  |  |  |  |  |  |  |  |  |  |  |
France |  |  | (237 | ) |  |  | (163 | ) |  |  | (161 | )
Other countries |  |  | (550 | ) |  |  | (351 | ) |  |  | (373 | )
Sub-total current income tax expense |  |  | (787 | ) |  |  | (515 | ) |  |  | (534 | )
Deferred income tax (expense) benefit: |  |  |  |  |  |  |  |  |  |  |  |
France |  |  | (1 | ) |  |  | 2 |  |  |  | (15 | )
Other countries |  |  | 109 |  |  |  | 155 |  |  |  | 161 |
Sub-total deferred income tax (expense) benefit |  |  | 108 |  |  |  | 157 |  |  |  | 146 |
Total |  |  | (679 | ) |  |  | (358 | ) |  |  | (388 | )
23 - 3 Deferred income taxes: Deferred income taxes reflect the impact of temporary differences between the amounts of assets and liabilities reported for financial reporting purposes and such amounts as measured in accordance with tax laws. The tax effects of temporary differences which give rise to significant deferred tax assets (liabilities) are as follows by nature:
|  | December 31,
|  | 2019 |  | 2018
Net operating loss carry forwards |  |  | 13,642 |  |  |  | 13,675 |
Elimination of intercompany profit in inventory |  |  | 269 |  |  |  | 187 |
Elimination of intercompany profit in fixed assets |  |  | 349 |  |  |  | 343 |
Provisions for retirement indemnities |  |  | 577 |  |  |  | 488 |
Capital leases treated as operating leases for tax |  |  | 29 |  |  |  | 10 |
Other items |  |  | 544 |  |  |  | 174 |
Total deferred tax assets |  |  | 15,410 |  |  |  | 14,877 |
Total deferred tax liabilities |  |  | - |  |  |  | - |
Net deferred tax assets |  |  | 15,410 |  |  |  | 14,877 |
Valuation allowance for deferred tax assets |  |  | (14,977 | ) |  |  | (14,553 | )
Deferred tax assets (liabilities), net of allowance |  |  | 432 |  |  |  | 324 |
Net operating loss carryforwards available amounts to €57,701 thousand as of December 31, 2019, of which €31,359 thousand at EDAP TMS SA, €22,413 thousand at Edap Technomed Inc., €2,171 thousand at Edap Technomed Co Ltd Japan, €1,758 thousand at EDAP Technomed Italia S.R.L. These net operating losses generate deferred tax assets of €13,642 thousand as at December 31, 2019. Realization of these tax assets is contingent on future taxable earnings in the applicable tax jurisdictions. As of December 31, 2019, €55,530 thousand out of these €57,701 thousand net operating loss carry-forwards have no expiration date but the amount of the net operating loss carry-forward, which can be used each year to offset taxable earnings, is limited in all jurisdictions. The remaining tax loss carry-forwards expire from years 2019 through 2029. In accordance with ASC 740, a valuation allowance is established if, based on the weight of available evidence, it is more-likely-than- not that some portion or all of the deferred tax asset will not be realized. The 2017 U.S. Tax Act was enacted on December 22, 2017. The 2017 U.S. Tax Act includes a number of changes in existing tax law which impacted our business in the U.S. Starting with tax year 2018, the U.S. corporate tax rates changed from a graduated system ranging from 15% to 39% to a flat 21% of taxable net income. For taxable net income of $100K and greater for years 2018 and following, EDAP’s U.S. subsidiary would pay significantly lower taxes than with the previous tax law. Starting from tax year 2019, the French corporate tax rates of taxable net income will gradually decrease from 28% to 25% in 2022. 23 - 4 Effective tax income (expense) A reconciliation of differences between the statutory French income tax rate and the Company’s effective tax income (loss) is as follows:
|  | 2019 |  | 2018 |  | 2017
Effective income / (loss) tax at French statutory tax rate |  |  | (614 | ) |  |  | (6 | ) |  |  | 98 |
Income of foreign subsidiaries taxed at different tax rates |  |  | (51 | ) |  |  | (124 | ) |  |  | 64 |
Effect of net operating loss carry-forwards and valuation allowances |  |  | 189 |  |  |  | (210 | ) |  |  | (1,530 | )
Non-taxable debt fair value variation |  |  | - |  |  |  | 235 |  |  |  | 1,026 |
Permanent differences |  |  | (251 | ) |  |  | (392 | ) |  |  | 178 |
Effect of cancellation of intra-group positions |  |  | (54 | ) |  |  | 35 |  |  |  | 144 |
French business tax included in income tax (CVAE) |  |  | (159 | ) |  |  | (161 | ) |  |  | (161 | )
Other |  |  | 263 |  |  |  | 265 |  |  |  | (207 | )
Effective income (loss) tax |  |  | (679 | ) |  |  | (358 | ) |  |  | (388 | )
23 - 5 Uncertainty in Income Taxes According to ASC 740, the Company reviewed the tax positions of each subsidiary. On December 31, 2019 the Company believes that there is no significant uncertainty in the Company’s tax positions. The Company remains subject to examination by major tax jurisdictions. Interest and penalties on income taxes are classified as a component of the provision for income taxes. There were no interest or penalties in 2019, 2018 and 2017.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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