The British oil and gas company said on Tuesday the cut in U.S. corporate income tax from 35 percent to 21 percent was expected to positively impact its U.S. earnings in the long run.
But in the short term, lower tax rates would affect its deferred tax assets and liabilities, resulting in a one-off, non-cash charge of $1.5 billion to its fourth quarter results which are due to be announced on Feb. 8, it said.
“The ultimate impact of the change in the U.S. corporate income tax rate is subject to a number of complex provisions in the legislation which BP is reviewing,” BP said in a statement.