Royal Dutch Shell has announced that US tax changes enacted by the Trump administration will likely be favourable to the organisation.
The company stated that the recent reduction in US income tax rate from 35% to 21% will be determined in the third quarter projections, but should be beneficial to the firm.
Royal Dutch Shell announced that it would expect to incur a third quarter charge of around $2 – 2.5 billion, but that this would be driven by its tax deferred position, and would be reassessed.
Shell stated that it ‘intends to determine and announce the actual impact including any fourth quarter movements, and balance sheet adjustments, as part of its fourth quarter 2017 results. However, on the basis of the third quarter 2017 financial statements, Shell would have incurred an estimated charge to earnings of $2.0 to 2.5 billion primarily driven by a re-measurement of its deferred tax position to reflect the lower corporate income tax rate. This charge represents a non-cash adjustment and will be reflected as an identified item’.
