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Income taxes	3 Months Ended
Mar. 31, 2021
Income taxes
Income taxes	9. Income taxes At the end of each interim period, the Company estimates the effective tax rate expected to be applicable for the full fiscal year. The estimate reflects, among other items, management’s best estimate of operating results. It does not include the estimated impact of foreign exchange rates or unusual and/or infrequent items, which may cause significant variations in the customary relationship between income tax expense and income before income taxes. For the three months ended March 31, 2021, income tax expense was $8,419,000, compared to an income tax expense of $5,648,000 for the same period in 2020. The effective tax rate was 23% in the first quarter of 2021, compared to 20% in the first quarter of 2020. The effective tax rate increased in the three months ended March 31, 2021 compared to the three months ended March 31, 2020 primarily due to a higher estimate of non-deductible expenses, an increased proportion of income taxed in jurisdictions with higher tax rates, and write off of a deferred tax asset upon departure of a management employee of Rouse. The higher estimate of non-deductible expenses are primarily due to final regulations published on April 8, 2020 by the United States Department of Treasury and the Internal Revenue Service (“IRS”) that clarified income tax benefits related to hybrid financing arrangements would not be deductible (“Hybrid Interest”). Partially offsetting these increases was a higher tax deduction for PSU and RSU share unit expenses, which were settled in the quarter, that exceeded the related compensation expense.

Income taxes

3 Months Ended

Mar. 31, 2021

9. Income taxes

At the end of each interim period, the Company estimates the effective tax rate expected to be applicable for the full fiscal year. The estimate reflects, among other items, management’s best estimate of operating results. It does not include the estimated impact of foreign exchange rates or unusual and/or infrequent items, which may cause significant variations in the customary relationship between income tax expense and income before income taxes.

For the three months ended March 31, 2021, income tax expense was $8,419,000, compared to an income tax expense of $5,648,000 for the same period in 2020. The effective tax rate was 23% in the first quarter of 2021, compared to 20% in the first quarter of 2020.

The effective tax rate increased in the three months ended March 31, 2021 compared to the three months ended March 31, 2020 primarily due to a higher estimate of non-deductible expenses, an increased proportion of income taxed in jurisdictions with higher tax rates, and write off of a deferred tax asset upon departure of a management employee of Rouse. The higher estimate of non-deductible expenses are primarily due to final regulations published on April 8, 2020 by the United States Department of Treasury and the Internal Revenue Service (“IRS”) that clarified income tax benefits related to hybrid financing arrangements would not be deductible (“Hybrid Interest”). Partially offsetting these increases was a higher tax deduction for PSU and RSU share unit expenses, which were settled in the quarter, that exceeded the related compensation expense.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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