PARIS (dpa-AFX) - Societe Generale (SCGLF.PK, SCGLY.PK) said the US tax reform (Tax Cuts and Jobs Act) reduced the statutory rate of US federal corporate tax rate to 21% with immediate effect from January 2018. The short term accounting impact of this change in rate and the valuation of deferred tax assets of the US tax Group will result in a charge of $307 million to be recorded in fourth quarter of 2017. Societe Generale also announced the receipt of a proposal for rectification following a tax audit of the French tax administration on various operating taxes and the financial consequences of the judgment of the Paris Court of Appeal of 21 December 2017 on the dematerialization of the processing of checks, which together result in a charge of around 200 million euros in operating expenses in fourth quarter of 2017.
Societe Generale noted that, from 2018, the decrease of the federal tax rate will have a favorable impact on the profitability of Group operations in the US.
Copyright RTT News/dpa-AFX