BKNG · 10-Q · 2026Q3 · Full report

U.S. Tax Law Changes

Booking Holdings Inc. · 2026-11-03 · Importance 37 · Surprise 42 · In source text

The One Big Beautiful Bill Act changed certain U.S. international, foreign-tax-credit, and domestic tax provisions effective in 2025 and 2026. Provisions affecting the Company’s 2026 effective tax rate include U.S. interest-expense limitation rules and the use of additional foreign tax credits in calculating U.S. federal tax on international earnings. Separately, an audit began during 2026 of the Company’s refund claim concerning its 2018 federal one-time deemed repatriation liability, following the April 2026 U.S. Tax Court decision in Varian Medical Systems, Inc. vs. Commissioner.

Key facts

• The One Big Beautiful Bill Act changed certain international, foreign tax credit, and domestic tax provisions effective in 2025 and 2026; 2026 provisions affecting Booking Holdings Inc.'s effective tax rate include U.S. interest-expense limitation rules and use of additional foreign tax credits. source
• The BBB Act made changes to certain international, foreign tax credit, and domestic tax provisions effective in 2025 and 2026; provisions effective in 2026 affecting Booking Holdings' effective tax rate include U.S. interest expense limitation rules and additional foreign tax-credit utilization. source
• Booking Holdings stated that the impact of the BBB Act could negatively affect results of operations and cash flows. source

Impact estimates