Australia's BHP flags US$1.8 billion charge from US tax reform

Australia's BHP flags US$1.8 billion charge from US tax reform

BHP Billiton said on Tuesday it will record a US$1.8 billion income tax expense due to cuts in the U.S. Federal corporate income tax rate.

Australian mining company BHP's new corporate logo
FILE PHOTO: Australian mining company BHP's new corporate logo, released to Reuters from their Melbourne, Australia, headquarters May 15, 2017. BHP/Handout via REUTERS

REUTERS: BHP Billiton said on Tuesday it will record a US$1.8 billion income tax expense due to cuts in the U.S. Federal corporate income tax rate.

The expense, which will be treated as an exceptional item, consists of a non-cash re-measurement of deferred taxes of US$898 million and a non-cash impairment of foreign tax credits of US$834 million.

However, the miner has said that the lower corporate tax rate will benefit its U.S. attributable profit in the longer term.

(Reporting by Chris Thomas in Bengaluru; editing by Richard Pullin)

Source: Reuters

Bookmark