Deferred taxes on foreign earnings: A road map

November 2010
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Deferred taxes on foreign earnings: A road map

At a glance

The calculation of a deferred tax liability for undistributed foreign earnings is complex and subjective. PwC advises extreme care in measuring these deferred liabilities.

Whether for the purpose of disclosure or recording the liability, significant judgement 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.