Photo: SuppliedTourism Holdings Ltd (THL) is the key New Zealand beneficiary of United States tax reform, which will boost its US-derived income from 2019. US President Donald Trump’s Tax Cuts and Jobs Act lowered the US federal corporation tax rate from 35% to 21% for tax years beginning on or after January 1, 2018. THL’s current effective US tax rate was 40%, falling to 27% when the changes took effect. Its tax obligations included federal corporation tax, which would fall from 35% to 21%, and state taxes, which differed from state to state. Forsyth Barr had raised its earnings forecasts to reflect the benefits of the US tax rate changes and revisions to currency assumptions, given a lower NZD/AUD cross rate.

Source: Otago Daily Times January 14, 2018 15:56 UTC