AMD · 10-K · 2025A · Full report

Income Tax Rate Changes

ADVANCED MICRO DEVICES INC · 2026-02-04 · Importance 78 · Surprise 100

In July 2025 the One Big Beautiful Bill Act (OBBBA) was enacted and for fiscal 2025 its primary impact to AMD was accelerated expensing of domestic R&D which decreased income eligible for FDII, reduced deferred tax assets, and lowered current income tax liability; other OBBBA changes had no material impact on the financial statements. AMD recorded an $853 million benefit in 2025 related to the release of uncertain tax positions tied to IRS reasonable cause relief for dual consolidated losses, contributing to an effective tax rate of (2.5%) for 2025. AMD also discussed OECD-led global minimum tax (Pillar Two) developments and noted that while the impact was immaterial for 2024 and 2025 it continues to evaluate proposed and enacted legislative changes across jurisdictions. The company will monitor further guidance (including the OECD January 2026

Key facts

• Income tax benefit for 2025 was $103 million, representing an effective tax rate of (2.5%); income tax provision for 2024 was $381 million, representing an effective tax rate of 19%.
• The decrease in income tax provision in 2025 was primarily driven by an $853 million benefit related to the release of uncertain tax positions pertaining to the reasonable cause relief for dual consolidated losses approved by the IRS in April 2025.
• For fiscal year 2025, the primary impact of the One Big Beautiful Bill Act (enacted July 2025) to AMD's tax provision was accelerated expensing of domestic R&D activities which decreased income eligible for FDII, reduced deferred tax assets, and reduced current income tax liability.

Impact estimates