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Weir says effective tax rate to be around 25% after US reforms, effect on group broadly neutral
FTSE 250 engineer Weir said on Thursday that US tax reforms, which cut the corporate tax rate to 21% from 35%, are likely to give rise to an initial one-off non-cash tax credit in 2017 resulting from the revaluation of the group's aggregate US deferred tax assets and deferred tax liabilities.
From this year, the favourable impact of the headline federal rate reduction is likely to be largely offset by greater restriction on the level of interest deduction allowed in the US, leaving the overall impact of the act on the group's effective tax rate broadly neutral.
Based on a preliminary assessment, Weir expects its effective tax rate for 2018 to be around 25%.