Sun Life Financial Inc. (PSE: SLF) (TSX:SLF) (NYSE:SLF) has announced the estimated impact of U.S. corporate tax reform on the company. Under the Tax Cuts and Jobs Act, which took effect January 1, 2018, the U.S. corporate tax rate was reduced to 21% from the previous rate of 35%. As a result of this legislation, the company expects the tax expense included in its 2018 underlying net income to decrease by approximately $130 million.
Sun Life Financial also expects to take a charge to reported net income of approximately $200 million related to U.S. tax reform when the company reports its fourth quarter results on February 14, 2018. The expected charge reflects the net impact of U.S. corporate tax reform on actuarial liabilities, deferred tax assets and deferred tax liabilities and a one-time tax charge on deemed repatriation of foreign earnings.