Deferred tax expense

Deferred tax expense

A non-cash expense that provides a source of free cash flow. Amount allocated during the period to cover tax liabilities that have not yet been paid.

Deferred Tax Expense

Money that an individual or company owes for taxes but has not yet paid. Deferred tax expenses are placed aside and kept until the company or individual pays taxes, either once per quarter or once per year. Deferred tax expenses are most common for corporations and independent contractors who do not have their taxes deducted from their cash inflows.