(Adds background, details on Navitas’ assets)
Dec 27 (Reuters) - Australian engineering firm WorleyParsons Ltd and education provider Navitas Ltd said on Wednesday they would incur one-off charges following the recently passed tax legislation in the United States.
WorleyParsons said in a statement it expected a one-time charge to the group’s income tax expense of between A$45 million ($34.77 million) and A$60 million and the charge would not be included in the group’s underlying earnings.
The firm said the charge-off was related to the U.S. corporate tax rate being cut to 21 percent from the existing 35 percent as well as the possible loss of currently available tax deductions.
Meanwhile, Navitas said it was cutting the carrying value of its tax assets in the United States, resulting in an income tax charge of A$7.5 million which would appear in its 2018 interim financial statements.
Navitas said in the same statement that carrying value of its U.S. tax assets was reduced to A$9.9 million from A$17.4 million.
On Dec. 22, U.S. President Donald Trump signed the $1.5 trillion tax overhaul into law, cutting tax rates for businesses and offering some temporary cuts for some individuals and families.
The tax package represents the largest such overhaul since the 1980s and had faced opposition due to projections that it could add $1.5 trillion to the U.S.’ $20 trillion national debt during the next decade.
$1 = 1.2943 Australian dollars Reporting by Aaron Saldanha in Bengaluru; Editing by Andrew Hay and Sandra Maler