XP Power to book one-off credit following US tax changes
Source - SMW
Power control component maker XP Power said new US tax policy was expected to generate a non-cash tax credit in 2017 of around £5.2m.
The credit was as a result of the reduction in the federal tax rate from 35% to 21% and would be excluded from adjusted earnings.
The company also said it had received notice that claims relating to the Development and Expansion Incentive in Singapore had been accepted by the city state's inland revenue authority, resulting in a £1.3m refund of corporate tax paid in 2015 and 2016.
'We will continue to work through the full impact of these changes but expect the company's future effective adjusted tax rate to be in the range 15-17% depending on regional mix of profits,' XP Power said.