Major components of tax expense (income) [abstract]

Total income taxes for the years ended December 31, 2023, 2022 and 2021 are allocated as follows:


	2023			2022			2021
Current:
- Domestic		(1,065	)		(838	)		(2,116	)
- Foreign		(659	)		(1,582	)		(3,170	)
Total (a)		(1,724	)		(2,420	)		(5,286	)
Deferred:
- Domestic		—			—			—
- Foreign		634			147			897
Total (b)		634			147			897
Total (a + b)		(1,090	)		(2,273	)		(4,389	)

Reconciliation of Income Tax Expense

The effective income taxes differ from the expected income tax expense (computed by applying the IRES state tax, which is 24% for 2023, 2022 and 2021, to profit before income taxes and non-controlling interests) as follows:


	2023			2022			2021
Expected tax benefit (expense) at statutory tax rates		3,617			(855	)		(2,106	)
Effect of:
- Tax exempt income		4,530			2,618			2,320
- Aggregate effect of different tax rates in foreign jurisdictions		(481	)		(79	)		191
- Italian regional tax		(8	)		(28	)		(78	)
- Non-deductible expenses		(5,675	)		(1,635	)		(5,152	)
- Tax effect on unremitted earnings		—			(755	)		(515	)
- Non taxable gain from disposal of a subsidiary		—			—			1,057
- Chinese withholding tax on income not recoverable		(1,100	)		—			(699	)
- Effect of net change in deferred tax assets unrecognised		(1,973	)		(1,539	)		593
Actual tax charge		(1,090	)		(2,273	)		(4,389	)

Summary of Movements in deferred Tax Balances

Movements in deferred tax balances occurred during 2021, 2022 and 2023 are analysed as follows:


	Def. tax assets			Def. tax liabilities			Total
Balance as at December 31, 2020		2,023			(2,515	)		(492	)
Recognised in profit or loss		(728	)		1,110			382
Recognised in OCI		—			—			—
Recognised directly in equity		—			—			—
Balance as at December 31, 2021		1,295			(1,405	)		(110	)
Recognised in profit or loss		670			(524	)		146
Recognised in OCI		—			—			—
Recognised directly in equity		—			—			—
Balance as at December 31, 2022		1,965			(1,929	)		36
Recognised in profit or loss		10			623			633
Recognised in OCI		—			—			—
Recognised directly in equity		—			—			—
Balance as at December 31, 2023		1,975			(1,306	)		669

Summary of Unrecognised Deferred Tax Assets

As at December 31, 2023 and 2022 deferred tax assets have not been recognised in respect of the following items, because it is not probable that future taxable profit will be available against which the Group can use the benefits therefrom.


Unrecognised deferred tax assets	31/12/223				31/12/22
	Gross Amount		Tax effect		Gross Amount		Tax effect
Tax loss carry-forwards		367,620		90,025		366,175		90,713
Provision for contingent liabilities		6,588		1,893		7,673		2,207
Inventory obsolescence		7,803		2,197		8,266		2,327
Allowance for doubtful accounts		3,744		899		5,125		1,230
Intercompany profit on inventories		7,890		2,274		4,716		1,359
Provision for warranties		2,613		753		3,375		973
Impairment of non-financial assets		2,613		591		3,284		870
IAS 19 adjustment - employees’ leaving entitlement		—		—		—		—
Other temporary differences		16,141		3,503		10,868		1,925
Total unrecognised deferred tax assets		415,012		102,135		409,482		101,604