Mining giant BHP (ASX:BHP) has announced it’s expecting to be hit by a US$1.8 billion income tax expense.
It comes on the back of the Trump administration dropping the corporate tax rate from 35 to 21 per cent, as well as introducing other tax provisions.
The US$1.8 billion factors in its reduced tax forecasts, with US$834 million in non-cash impairments or write downs of foreign tax credits.
While the slashed corporate tax rate resulted in US$898 million re-measurement costs of deferred taxes.
Ultimately BHP says as the tax rate did drop from 35 per cent it will have a positive impact on the group’s profits in the long term due to a lower corporate tax rate.
Shares in BHP (ASX:BHP) closed 1.15 per cent higher yesterday at $29.90.