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Income Tax
 6 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]  
Income Tax Income Tax

The components of income tax expense for the three and six months ended June 30, 2020 and 2019, respectively, consisted of the following:
 
 
Three months ended June 30,
 
Six months ended June 30,
(In thousands)
 
2020
 
2019
 
2020
 
2019
Current tax provision
 
$
4,654

 
$
3,428

 
$
10,252

 
$
8,119

Deferred tax benefit
 
(134
)
 
(939
)
 
(1,214
)
 
(1,821
)
Income tax expense
 
$
4,520

 
$
2,489

 
$
9,038

 
$
6,298



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 six months ended June 30, 2020 and 2019, and its segregation based on location of operations:
 
 
Three months ended June 30,
 
Six months ended June 30,
(In thousands)
 
2020
 
2019
 
2020
 
2019
Current tax provision (benefit)
 
 
 
 
 
 
 
 
Puerto Rico
 
$
1,528

 
$
1,503

 
$
3,207

 
$
3,316

United States
 
139

 
(97
)
 
294

 
15

Foreign countries
 
2,987

 
2,022

 
6,751

 
4,788

Total current tax provision
 
$
4,654

 
$
3,428

 
$
10,252

 
$
8,119

Deferred tax (benefit) provision
 
 
 
 
 
 
 
 
Puerto Rico
 
$
(458
)
 
$
(1,119
)
 
$
(546
)
 
$
(1,595
)
United States
 
1,126

 
373

 
1,101

 
1

Foreign countries
 
(802
)
 
(193
)
 
(1,769
)
 
(227
)
Total deferred tax benefit
 
$
(134
)
 
$
(939
)
 
$
(1,214
)
 
$
(1,821
)


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 June 30, 2020, the Company has $70.2 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 June 30, 2020, the gross deferred tax asset amounted to $19.4 million and the gross deferred tax liability amounted to $19.0 million, compared to $13.1 million and $18.7 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:
 
 
Six months ended June 30,
(In thousands)
 
2020
 
2019
Computed income tax at statutory rates
 
$
17,602

 
$
22,563

Benefit of net tax-exempt interest income
 
(15
)
 
(36
)
Differences in tax rates due to multiple jurisdictions
 
1,149

 
3

Tax benefit due to a change in estimate
 
131

 
300

Effect of income subject to tax-exemption grant
 
(12,050
)
 
(16,322
)
Unrecognized tax expense
 
193

 
202

Other expense (benefit)
 
2,028

 
(412
)
Income tax expense
 
$
9,038

 
$
6,298