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Income Tax
 9 Months Ended
Sep. 30, 2023
Income Tax Disclosure [Abstract]  
Income Tax Income Tax
The components of income tax expense for the three and nine months ended September 30, 2023 and 2022, respectively, consisted of the following:
 Three months ended September 30,Nine months ended September 30,
(In thousands)2023202220232022
Current tax provision $8,166 $9,537 $21,037 $24,610 
Deferred tax benefit(13,024)(489)(16,491)(1,699)
Income tax (benefit) expense $(4,858)$9,048 $4,546 $22,911 

The Company conducts operations in Puerto Rico, the United States, 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, 2023 and 2022, and its segregation based on location of operations:
 Three months ended September 30,Nine months ended September 30,
(In thousands)2023202220232022
Current tax provision
Puerto Rico$1,851 $6,318 $5,626 $11,809 
United States80 44 138 107 
Foreign countries6,235 3,175 15,273 12,694 
Total current tax provision $8,166 $9,537 $21,037 $24,610 
Deferred tax benefit
Puerto Rico$(11,169)$719 $(11,593)$(321)
United States34 54 38 9 
Foreign countries(1,889)(1,262)(4,936)(1,387)
Total deferred tax benefit$(13,024)$(489)$(16,491)$(1,699)

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, 2023, the Company had $130.6 million of unremitted earnings from foreign subsidiaries, compared to $115.5 million as of December 31, 2022. 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, 2023, the gross deferred tax asset amounted to $29.9 million and the gross deferred tax liability amounted to $20.0 million, compared to $17.9 million and $20.7 million, respectively, as of December 31, 2022. As of September 30, 2023, and December 31, 2022, there is a valuation allowance against the gross deferred tax asset of approximately $2.4 million and $1.6 million, respectively.

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)20232022
Computed income tax at statutory rates$27,231 $87,402 
Differences in tax rates due to multiple jurisdictions3,034 2,612 
Effect of income subject to tax-exemption grant(24,697)(26,262)
Effect of the gain on sale of a business— (39,645)
Unrecognized tax expense103 (3,472)
Excess tax benefits on share-based compensation11 169 
Tax credits for research and development activities(884)— 
Other, net (252)2,107 
Income tax expense$4,546 $22,911