Deferred taxes on foreign earnings: A road map

| September 2012

Overview

Asserting indefinite reinvestment traditionally has been a widespread practice among multinational businesses. A majority of large companies make the assertion with respect to much, if not all, of their foreign earnings.

Whether for the purpose of disclosure or recording the liability, significant judgment must be applied in measuring the deferred taxes on foreign earnings. Management needs to make assumptions about the operations of its business and consider the impact of planning opportunities.

To assist organizations in making this assertion, PwC has refreshed our Deferred taxes on foreign earnings:  A road map article (originally released in December of 2010).  In this new release, we made updates to reflect trends in multinational businesses, unremitted foreign earnings, and recent regulatory trends, as well as updated references to PwC's 2012 Guide to Accounting for Income Taxes.

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David Wiseman
US Tax Accounting Services leader
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