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BHP Billiton takes US$1.8bn hit from Donald Trump's tax reform

The miner said lower corporate tax in the US will benefit profits in the longer term
BHP Billiton
The expense includes charges on deferred taxes and foreign tax credits

BHP Billiton PLC (LON:BLT) said it will take a US$1.8bn charge resulting from the US tax reform.

The one-off income tax expense includes a non-cash charge on deferred taxes of US$898mln and another charge on foreign tax credits of US$834mln. The expense will be treated as an exceptional item.

READ: BHP Billiton to pay up to US$181.0mln to support the restoration of environment and communities affected by the Samarco dam failure

In the long run, however, lower corporate tax in the US will benefit profits, the miner said.

The corporate tax rate has been cut to 21% from 35% under President Donald Trump’s tax overhaul, which was approved by the House of Representatives in December.

In afternoon trading, BHP shares on the FTSE 100 index were 1.2% higher at 1,522.60p.

 -- Adds share price --

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