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Income Tax
 9 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]  
Income Tax Income Tax

The components of income tax expense for the three and nine months ended September 30, 2020 and 2019, respectively, consisted of the following:
 
 
Three months ended September 30,
 
Nine months ended September 30,
(In thousands)
 
2020
 
2019
 
2020
 
2019
Current tax provision
 
$
7,381

 
$
6,096

 
$
17,633

 
$
14,215

Deferred tax benefit
 
(868
)
 
(2,376
)
 
(2,082
)
 
(4,197
)
Income tax expense
 
$
6,513

 
$
3,720

 
$
15,551

 
$
10,018



The Company conducts operations in Puerto Rico and certain countries in Latin America. As a result, the income tax expense includes the effect of taxes paid to the government of Puerto Rico as well as foreign jurisdictions. The following table presents the components of income tax expense for the three and nine months ended September 30, 2020 and 2019, and its segregation based on location of operations:
 
 
Three months ended September 30,
 
Nine months ended September 30,
(In thousands)
 
2020
 
2019
 
2020
 
2019
Current tax provision
 
 
 
 
 
 
 
 
Puerto Rico
 
$
3,280

 
$
2,117

 
$
6,487

 
$
5,433

United States
 
214

 
187

 
508

 
202

Foreign countries
 
3,887

 
3,792

 
10,638

 
8,580

Total current tax provision
 
$
7,381

 
$
6,096

 
$
17,633

 
$
14,215

Deferred tax (benefit) provision
 
 
 
 
 
 
 
 
Puerto Rico
 
$
(989
)
 
$
(1,583
)
 
$
(1,535
)
 
$
(3,178
)
United States
 
(68
)
 
(169
)
 
1,033

 
(168
)
Foreign countries
 
189

 
(624
)
 
(1,580
)
 
(851
)
Total deferred tax benefit
 
$
(868
)
 
$
(2,376
)
 
$
(2,082
)
 
$
(4,197
)


Taxes payable to foreign countries by EVERTEC’s subsidiaries will be paid by such subsidiary and the corresponding liability and expense will be presented in EVERTEC’s consolidated financial statements.

As of September 30, 2020, the Company has $74.2 million of unremitted earnings from foreign subsidiaries. The Company has not recognized a deferred tax liability on undistributed earnings for the Company’s foreign subsidiaries because these earnings are intended to be indefinitely reinvested.

As of September 30, 2020, the gross deferred tax asset amounted to $17.3 million and the gross deferred tax liability amounted to $16.2 million, compared to $12.8 million and $15.0 million, respectively, as of December 31, 2019.

Income tax expense differs from the amount computed by applying the Puerto Rico statutory income tax rate to the income before income taxes as a result of the following:
 
 
Nine months ended September 30,
(In thousands)
 
2020
 
2019
Computed income tax at statutory rates
 
$
33,012

 
$
33,253

Differences in tax rates due to multiple jurisdictions
 
831

 
405

Excess tax benefits on share-based compensation
 
(262
)
 
(1,300
)
Effect of income subject to tax-exemption grant
 
(21,662
)
 
(24,128
)
Unrecognized tax benefit
 
1,173

 
211

Other expense
 
2,459

 
1,577

Income tax expense
 
$
15,551

 
$
10,018