v3.26.1
Income Taxes
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes

Note 10. Income Taxes

 

The Company files income tax returns for TG, ES and ES Metals in the Republic of Colombia. GM&P, Componenti and ESW LLC are U.S. entities based in Florida subject to U.S. federal and state income taxes. Tecnoglass as well as the Company’s other subsidiaries in the Cayman Islands do not currently have any tax obligations.

 

On July 7, 2026, the Company completed its continuation from the Cayman Islands to the State of Florida and changed its jurisdiction of incorporation from the Cayman Islands to Florida. In connection with the continuation, the Company became governed by the Florida Business Corporation Act and its Florida Articles of Incorporation and Bylaws. Each outstanding ordinary share of the Company automatically became a share of common stock of the Florida corporation with the same par value, and the Company’s common stock continues to be listed and traded on the New York Stock Exchange under the symbol “TGLS.”

 

 

As a result of the redomiciliation, the Company will be subject to U.S. federal income taxation. The Company’s foreign subsidiaries will be treated as controlled foreign corporations for U.S. tax purposes, and certain income of those entities will be included in the U.S. tax computation. Management believes that the effective foreign tax rates applicable to such income are sufficient to generate foreign tax credits that substantially offset any incremental U.S. federal income tax liability. Accordingly, management does not expect the redomiciliation to have a material impact on the Company’s income tax provision.

 

The components of income tax expense are as follows:

 

   2026   2025   2026   2025 
  

Three months ended

June 30,

  

Six months ended

June 30,

 
   2026   2025   2026   2025 
Current income tax                    
United States  $(7,327)  $(8,286)  $(14,417)  $(11,920)
Colombia   (1,208)   (10,329)   (6,571)   (21,881)
Panama   -    (1)   -    (5)
Total current income tax   (8,535)   (18,616)   (20,988)   (33,806)
                     
Deferred income Tax                    
United States   (3,130)   58    (994)   (1,355)
Colombia   (2,430)   410    (4,015)   (647)
Total deferred income tax   (5,560)   468    (5,009)   (2,002)
Total income provision  $(14,095)  $(18,148)  $(25,997)  $(35,808)
                     
Effective tax rate   36.5%   29.2%   31.5%   29.3%

  

The effective income tax rate for the three and six months ended June 30, 2026, of 36.5%, and 31.5%, respectively, reflects he impact of certain foreign expenses incurred by the Company’s Colombian subsidiaries that are not deductible for income tax purposes. The effective income tax rate for the three and six months ended June 30, 2025, of 29.2%, and 29.3%, respectively, approximates the weighted average statutory rate of 29.1%.