What does a tax deferred investment imply?

A tax deferred investment implies that any income generated from that investment is not taxed in the current period but will be subject to taxation at a later date. This allows the investor to retain more of their earnings to reinvest or use for other purposes without the immediate burden of tax payments. Such arrangements are common in retirement accounts or certain types of savings accounts where taxes are postponed until funds are withdrawn.

In contrast, the other options describe different tax situations. Tax breaks for foreign investors focus on incentives rather than deferred taxation. The notion of no taxes charged on the income earned does not align with the definition of tax deferral since it implies that there will never be a tax liability. Lastly, double taxation on earnings from a foreign investment refers to being taxed twice on the same income, which is unrelated to the concept of tax deferral.