Business
Smith & Nephew update on tax
Smith & Nephew update on tax.
About this update from Smith & Nephew Plc
[{"type":"text","content":"\n \nRNS Number : 6582C Smith & Nephew Plc 23 January 2018 \n\n \n \n \nSmith & Nephew update on tax \n23 January 2018\n \nSmith & Nephew (NYSE:SNN; LSE:SN), the global medical technology business, today announces updated guidance regarding its expected corporate tax rate following legislative changes to the tax environment in the United States. \n \nSmith & Nephew has now completed its initial analysis of the implications of the recently enacted US tax reform legislation, including the reduction in the US federal corporate income tax rate from 35% to 21% which came into effect on 1 January 2018. As a result of this change, from 2018 Smith & Nephew now expects a corporate tax rate on trading results in the range 20% to 21% for the medium term, barring any changes to tax legislation or other one-off items. This is a reduction of 4 to 5 percentage points on our previous guidance of around 25%. \n \nThe one-time effects of US tax reform in 2017, including the revaluation of certain deferred tax balances, are not expected to be material and will be taken outside trading results. \n \nSeparately, we now expect the full year tax rate on 2017 trading results to be lower than our previous guidance of around 22%. This is mainly due to the release of provisions, which are one-off in nature, as we conclude and revise open tax issues, including the US tax audit as reported at the half year. The final tax rate will be disclosed with Smith & Nephew's results for the year ended 31 December 2017 published on 8 February 2018. \n \n-ends-\n \nEnquiries\n\n\n\n\n \nInvestors\n\n\n\n\n\n\n\nIngeborg Øie \n\n\n+44 (0) 20 7960 2285\n\n\n\n\nSmith & Nephew\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nMedia\n\n\n\n\n\n\n\nCharles Reynolds \n\n\n+44 (0) 1923 477314\n\n\n\n\nSmith & Nephew\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nBen Atwell / Simon Conway\n\n\n+44 (0) 20 3727 1000\n\n\n\n\nFTI Consulting\n\n\n\n\n\n\n\n \n \nAbout Smith & Nephew\nSmith & Nephew is a global medical technology business dedicated to helping healthcare professionals improve people's lives. With leadership positions in Orthopaedic Reconstruction, Advanced Wound Management, Sports Medicine and Trauma & Extremities, Smith & Nephew has around 1...