BHP Billiton, the multinational mining company, has been hit with a £1.3bn bill following changes to corporate tax law in the US.
The expense, which will be treated as an exceptional item, will consist of a $898m non-cash charge on deferred taxes and a $843m charge on foreign tax credits.
The mining company said that the lower corporate tax rate will benefit its U.S. attributable profit in the longer term.
BHP Billiton said a lower corporate tax rate will help its U.S. profits going forward
The company’s share price has not been significantly moved by the news, rising 1 per cent to 1520p.
BHP Billiton’s first-half results are due on February the 20th. In its second-quarter production report last month, the company had hinted at a charge arising from the lowering of U.S. corporate taxes.
The mining company has recently come under pressure from activist investor Elliott Advisors, which owns a stake in the company.
The Australian company has been urged to review and unify its dual-listed status; it currently appears on both the UK and Australia’s stock market.
The U.S. House of Representatives in December approved the biggest overhaul of the U.S. tax code in 30 years, lowering the corporate tax rate to 21 percent from 35 percent.
Australian engineering firm WorleyParsons and education provider Navitas have also flagged one-off charges in relation to the U.S. tax reform.