APTV · 8-K · 20260804PR000057

OECD Global Minimum Tax

Aptiv PLC · 2026-08-04 · Importance 58 · Surprise 42

The OECD Administrative Guidance issued in the first quarter of 2025 affected Aptiv’s Swiss tax incentive. Aptiv no longer expects to obtain significant benefits from the incentive granted to its Swiss subsidiary in 2023. The company recognized approximately $300 million of valuation allowances on related deferred tax assets in 2025, including a $294 million tax adjustment disclosed in the reconciliation.

Key facts

• As a result of the Pillar Two OECD Administrative Guidance released in Q1 2025, the Company recognized an increase to valuation allowances of $294 million to reduce the related deferred tax asset during the three months ended March 31, 2025. source
• Tax expense in the six months ended June 30, 2025 was $342 million, which primarily reflected an increase to valuation allowances of approximately $300 million on deferred tax assets impacted by the OECD Administrative Guidance issued in Q1 2025. source