AMAT · 10-Q · 2026Q3 · Full report
OECD Global Minimum Tax
APPLIED MATERIALS INC /DE · 2026-08-20 · Importance 40 · Surprise 42 · In source text
Countries where Applied Materials operates have enacted or are planning tax laws implementing the OECD Base Erosion and Profit Shifting global minimum-tax regime. The rules began taking effect in fiscal 2025, and the company expected enacted legislation to materially increase foreign taxes beginning in the first quarter of fiscal 2026, primarily because of Singapore’s implementation. Applied Materials stated that varying country adoption dates and continuing interpretation by tax authorities could increase tax complexity and uncertainty and adversely affect future income-tax expense.
Key facts
- Recorded $1.2 billion of investment tax credits as of July 26, 2026, of which $41 million was recorded in other current assets and $1.2 billion was recorded in deferred income taxes and other assets and is expected to be refunded. source
- Currently enacted global minimum tax legislation is expected to materially increase our foreign taxes beginning in the first quarter of fiscal 2026, primarily due to implementation in Singapore. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | positive | realized | +2.8% | Recorded $1.2 billion of investment tax credits as of July 26, 2026, of which $41 million was recorded in other current assets and $1.2… |
| net_income | negative | probable | — | Currently enacted global minimum tax legislation is expected to materially increase our foreign taxes beginning in the first quarter of… |