Loomis positively affected by the US tax reform
The president of the United States, Mr. Donald Trump, has turned the US tax reform into legislation by signing the Tax Cuts & Jobs Act (TCJA). The TCJA’s main impact on Loomis in the fourth quarter this year is the reduction of the corporate tax rate in the US from 35 to 21 per cent.
As a consequence of the reduced tax rate in the US, Loomis expects, based on current estimates, to account for a one-off positive tax income in the range of SEK 55 to 70 million during the fourth quarter of 2017. The one-off positive tax income is due to revaluations of future tax liabilities, which Loomis US has on its balance sheet. The one-off positive tax effect in the fourth quarter 2017 is not expected to have a significant effect on cash flows.
In addition, as an effect of the new legislation Loomis expects, based on current estimates, that the group tax rate for 2018 will be between 25 and 26 per cent.