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 USD -307 million(1) to be recorded in Q4 17.
From 2018, the decrease of the federal tax rate will have a favorable impact on the profitability of Group operations in the US. With regard to the others effects of the tax reform, and more specifically the new tax on services and interest payments to affiliated companies outside the US (“base erosion and anti-abuse tax”), Societe Generale is currently reviewing the impact of these new rules, which may depend on guidance from US authorities.
2 – Others recent items
Societe Generale also announces 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 EUR -200 million in operating expenses in Q4 17, without prejudice to any appeal of these decisions.
NB: As a reminder, these items will not affect the dividend policy previously communicated.
(1) Around EUR -256 million