SAP says one-off item to reduce 2017 tax bill

Reuters News
|
Posted: Dec 15, 2017 6:55 AM

FRANKFURT (Reuters) - German business software group SAP SE <SAPG.DE> said on Friday lowered the forecast for its expected effective tax rate in 2017 to reflect the impact of an intra-group transfer of intellectual property rights.

Considering the estimated one-time benefit from the step, SAP now expects its full-year effective tax rate to be 23 to 24 percent based on international financial reporting standards, down from 26 to 27 percent previously.

Based on the non-IFRS accounting conventions it uses to present its results, the revised tax rate will be 25 to 26 percent down from 27 to 28 percent, SAP said in a statement.

SAP flagged the one-time benefit when it announced third-quarter results and the company promised to update investors once it had quantified its impact. The outlook does not consider any impact of a proposed U.S. tax reform now before Congress.

Recommended
The Left-wing Paradise of San Francisco
Rachel Alexander

(Reporting by Douglas Busvine; Editing by Maria Sheahan)