British energy giant BP set to gain from overhaul of U.S. tax reforms

Large oil firms, including BP and Shell are expected to benefit from changes made to the U.S tax code.

On Tuesday, BP stated it expects a positive outcome from the recent changes in the U.S. tax law on its future post-tax earnings.

In December 2017, the U.S. House of Representatives created history when it overhauled the U.S. tax law, a first since 3 decades, and cut corporate tax rates to 21% from 35%.

According to BP, the impact of the lowering of this tax rate would require BP to revaluate its U.S. deferred tax assets as well as liabilities; it also expects a one time tax levy of $1.5 billion.

BP stated it was in the process of reviewing the final impact of these recent tax changes and it expects to disclose the final one-time tax charge in its fourth-quarter results, due on February 6.

On a similar vein, last week, Shell disclosed that it expects the overhaul of U.S. tax code to have a “favorable” impact on its operations; the changes however would impact its fourth quarter results.

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