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Income Tax
 6 Months Ended
Jun. 30, 2022
Income Tax Disclosure [Abstract]  
Income Tax Income Tax
The components of income tax expense for the three and six months ended June 30, 2022 and 2021, respectively, consisted of the following:
 Three months ended June 30,Six months ended June 30,
(In thousands)2022202120222021
Current tax provision $8,196 $2,689 $15,073 $8,287 
Deferred tax benefit(508)(57)(1,210)(947)
Income tax expense $7,688 $2,632 $13,863 $7,340 

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 six months ended June 30, 2022 and 2021, and its segregation based on location of operations:
 Three months ended June 30,Six months ended June 30,
(In thousands)2022202120222021
Current tax provision (benefit)
Puerto Rico$3,176 $(569)$5,491 $1,035 
United States33 45 63 75 
Foreign countries4,987 3,213 9,519 7,177 
Total current tax provision $8,196 $2,689 $15,073 $8,287 
Deferred tax (benefit) provision
Puerto Rico$(647)$(226)$(1,040)$(520)
United States26 242 (45)(187)
Foreign countries113 (73)(125)(240)
Total deferred tax benefit$(508)$(57)$(1,210)$(947)

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, 2022, the Company has $113.5 million of unremitted earnings from foreign subsidiaries, compared to $99.1 million as of December 31, 2021. 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, 2022, the gross deferred tax asset amounted to $19.8 million and the gross deferred tax liability amounted to $13.5 million, compared to $22.3 million and $16.3 million, respectively, as of December 31, 2021. As of June 30, 2022, and December 31, 2021, there is a valuation allowance against the gross deferred tax asset of approximately $1.3 million and $1.4 million, respectively.

The Company estimates that it is reasonably possible that the Puerto Rico liability for uncertain tax positions relating to the net operating loss created by transaction costs from mergers and acquisitions will decrease by approximately $3.6 million during 2022 as a result of the statute of limitations.

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)20222021
Computed income tax at statutory rates$32,357 $34,513 
Differences in tax rates due to multiple jurisdictions1,155 960 
Effect of income subject to tax-exemption grant(20,440)(23,863)
Unrecognized tax (benefit) expense122 (3,580)
Excess tax benefits on share-based compensation(21)(976)
Other, net 690 286 
Income tax expense$13,863 $7,340