US tax reform will have a positive impact on Suominen, company says
HELSINKI, January 2, 2018-
As part of an extensive tax reform in the United States, the federal corporate tax rate in the US will decrease from 35% to 21% as of 1 January 2018. Suominen Group has net deferred tax liabilities of approximately EUR 10 million in the US. Thanks to the decrease in the corporate tax rate, the company’s net deferred tax liabilities are expected to decrease by approximately EUR 4 million. This non-recurring item will improve Suominen’s profit for 2017 as it will be recognized in the 2017 financial statements in income taxes decreasing Suominen’s total income taxes for the financial year. This will have no cash flow impact.
Suominen continues to analyze the other impacts of the US tax reform, such as the impact of the accelerated tax depreciation of new investments on 2017 income taxes. Suominen anticipates that also for this part, the tax reform will have a positive impact on the company.
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