Reinvested Earnings and Undistributed Branch Profits Law and Legal Definition

Reinvested Earnings and Undistributed Branch Profits comprises of (1) direct investors’ shares, in proportion to equity. It is held of earnings that foreign subsidiaries and associated enterprises do not distribute as dividends (i.e., reinvested earnings), and (2) earnings that branches and other unincorporated enterprises do not remit to direct investors.