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Company News Summary

BHP Billiton Advises on US Tax Reform

13 Feb 2018  |  17:09:00  |  Associate analysts  |  Increase  |  Decrease  |  

Original announcement: US Tax Reform

BHP Billiton advised that the Company expects to recognise an income tax expense of US$1.8bn which will be treated as an exceptional item as a result of the US Tax Cuts and Jobs Act introducing a reduction in the US Federal corporate income tax rate from 35% to 21% as well as other measures, including changes to international tax provisions. The two main components of this exceptional item are expected to be: a non-cash re-measurement of deferred taxes as a result of the reduction in the US Federal corporate income tax rate of US$898M; and a non-cash impairment of foreign tax credits due to reduced forecast utilisation of US$834M. The US tax reform will have a positive impact on the Group's US attributable profits in the longer term mainly due to the lower corporate tax rate.

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