INCOME TAXES (Tables)

6 Months Ended

Jun. 30, 2018

Differentiation between Effective Tax Rate and Statutory U.S. Income Tax Rate

The following table accounts for the differences between the federal statutory tax rate of 21% and 35% for the three months ended June 30, 2018 and 2017, respectively and the six months ended June 30, 2018 and 2017, respectively and the Company’s overall effective tax rate:

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Statutory provision		21.0	%		35.0	%		21.0	%		35.0	%
State taxes, net of federal benefit		1.5	%		1.1	%		1.4	%		1.9	%
City taxes		0.2	%		0.2	%		0.2	%		0.1	%
Foreign effective tax rates different from US statutory rate		(0.4	)%		(9.6	)%		0.5	%		(10.6	)%
Prior Year related state tax payment		—						—			0.9	%
Valuation Reserve Adjustment		—			—			—			(2.9	%)
Tax (Reserve) /Charge		0.4	%		—			0.4	%		—
Permanent difference federal tax (BEAT)		0.7	%		—			1.5	%		—
Permanent difference State/City tax (GILTI)		3.1	%		—			1.5	%		—
Effective Income Tax Rate		26.5	%		26.7	%		26.5	%		24.4	%

Minimum Alternate Tax (MAT)

Expiration Years of Minimum Alternate Tax Credit

The MAT credit as of June 30, 2018 of $45.81 million (net of valuation allowance of $2.43 million) must be utilized before March 31 of the following financial years and will expire as follows:

Year of Expiry Of MAT Credit	Amount in USD (in millions)
2022-2023		0.16
2023-2024		0.51
2024-2025		1.96
2025-2026		2.65
2026-2027		0.67
2027-2028		5.41
2028-2029		8.20
2029-2030		8.53
2030-2031		9.58
2031-2032		4.26
2032-2033		5.91
2033-2034		0.40
Total		48.24
Less: valuation allowance		(2.43	)
Total (net of valuation allowance)		45.81