Infosys in pricing pact with US IRS, to get $225 mn tax reversal

Agreement covers 2011-2021 period, will enhance predictability of Infy's tax obligations in respect of US operations

Infosys on Wednesday said it has signed an Advance Pricing Agreement (APA) with the US Internal Revenue Service (IRS) that will reduce its tax burden in the US by one percentage point till 2021 and give clarity on tax obligations in the country.

For the quarter ending December, Infosys will benefit from a tax reversal of $225 million it had paid in the past that will benefit positively by $0.10 in the earnings per share (EPS), the firm said in a statement.

Under the APA, Infosys and the IRS have agreed on the methodology to allocate revenues and compute the