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Note 20 - Deferred Income Tax
 12 Months Ended
Dec. 31, 2019
Statement Line Items [Line Items]  
Disclosure of deferred taxes [text block]
20
Deferred income tax
 
Deferred income taxes are calculated in full on temporary differences under the liability method using the tax rate of each country.
 
The evolution of deferred tax assets and liabilities during the year are as follows:
 
Deferred tax liabilities
 
    Fixed assets (*)   Inventories   Intangible and Other   Total
At the beginning of the year    
710,995
      
25,048
      
46,532
      
782,575
  
Translation differences    
(347
 )    
-
      
(4
 )    
(351
 )
Increase due to business combinations    
5,621
      
-
      
11,209
      
16,830
  
Charged directly to other comprehensive income    
-
      
-
      
423
      
423
  
Income statement charge / (credit)    
(64,930
 )    
(5,652
 )    
59,902
      
(10,680
 )
At December 31, 2019    
651,339
      
19,396
      
118,062
      
788,797
  
 
    Fixed assets (*)   Inventories   Intangible and Other   Total
At the beginning of the year    
744,926
      
34,934
      
55,585
      
835,445
  
Effect of adoption of new standards    
-
      
-
      
35
      
35
  
Translation differences    
(876
 )    
-
      
92
      
(784
 )
Charged directly to other comprehensive income    
-
      
-
      
288
      
288
  
Income statement charge    
(33,055
 )    
(9,886
 )    
(9,468
 )    
(52,409
 )
At December 31, 2018    
710,995
      
25,048
      
46,532
      
782,575
  
 
(*) Includes the effect of currency translation on tax base. See Note
7.
 
Deferred tax assets
    Provisions and
allowances		   Inventories   Tax losses   Other   Total
At the beginning of the year    
(16,116
 )    
(86,585
 )    
(396,257
 )    
(86,184
 )    
(585,142
 )
Translation differences    
362
      
306
      
497
      
286
      
1,451
  
Increase due to business combinations    
(1,160
 )    
(1,413
 )    
(1,172
 )    
(2,238
 )    
(5,983
 )
Charged directly to other comprehensive income    
-
      
-
      
-
      
(1,261
 )    
(1,261
 )
Income statement charge / (credit)    
(2,739
 )    
(5,712
 )    
14,100
      
(92,209
 )    
(86,560
 )
At December 31, 2019    
(19,653
 )    
(93,404
 )    
(382,832
 )    
(181,606
 )    
(677,495
 )
 
    Provisions and
allowances		   Inventories   Tax losses   Other   Total
At the beginning of the year    
(26,475
 )    
(89,555
 )    
(354,944
 )    
(60,033
 )    
(531,007
 )
Effect of adoption of new standards    
952
      
-
      
-
      
(164
 )    
788
  
Translation differences    
2,532
      
1,447
      
1,014
      
(38
 )    
4,955
  
Charged directly to other comprehensive income    
23
      
-
      
-
      
1,587
      
1,610
  
Income statement charge / (credit)    
6,852
      
1,523
      
(42,327
 )    
(27,536
 )    
(61,488
 )
At December 31, 2018    
(16,116
 )    
(86,585
 )    
(396,257
 )    
(86,184
 )    
(585,142
 )
 
In
2019
the effect of the adoption of IFRS
16
has been recognized as “Other” both for deferred tax assets and liabilities.
 
Deferred tax assets related to taxable losses of Tenaris subsidiaries are recognized to the extent it is considered probable that future taxable profits will be available against which such losses can be utilized in the foreseeable future. This amount includes
$338
million related to US subsidiaries mainly due to the recognition of accelerated fiscal depreciations. The remaining balance mainly corresponds to Japanese and Brazilian subsidiaries. These subsidiaries have incurred in fiscal losses in the past. Tenaris has concluded that these deferred tax assets will be recoverable based on the business plans and budgets.
 
The expiration dates of the recognized tax losses in less than
1
year, between
2
and
5
years and in more than
5
years is
0.2%,
2.5%
and
97.3%
respectively.
 
As of
December 31, 2019,
the net unrecognized deferred tax assets amount to
$121.2
million. The expiration dates of the unrecognized tax losses less than
1
year, between
2
and
5
years and more than
5
years is approximately
2.8%,
20.2%
and
77%.
 
The estimated recovery analysis of deferred tax assets and deferred tax liabilities is as follows:
 
    Year ended December 31,
    2019   2018
Deferred tax assets to be recovered after 12 months    
(538,274
 )    
(452,330
 )
Deferred tax liabilities to be settled after 12 months    
766,852
      
739,670
  
 
Deferred income tax assets and liabilities are offset when (
1
) there is a legally enforceable right to set-off current tax assets against current tax liabilities and (
2
) when the deferred income taxes relate to the same fiscal authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. The following amounts, determined after appropriate set-off, are shown in the Consolidated Statement of Financial Position:
 
    Year ended December 31,
    2019   2018
Deferred tax assets    
(225,680
 )    
(181,606
 )
Deferred tax liabilities    
336,982
      
379,039
  
     
111,302
      
197,433
  
 
The movement in the net deferred income tax liability account is as follows:
    Year ended December 31,
    2019   2018
At the beginning of the year    
197,433
      
304,438
  
Effect of adoption of new standards    
-
      
823
  
Translation differences    
1,100
      
4,171
  
Increase due to business combinations    
10,847
      
-
  
Charged directly to Other Comprehensive Income    
(838
 )    
1,898
  
Income statement credit    
(97,240
 )    
(113,897
 )
At the end of the year    
111,302
      
197,433