GOOG · 10-Q · 2026Q1 · Full report
Income Tax Rate Changes
Alphabet Inc. · 2026-04-30 · Importance 70 · Surprise 68 · Matches filing data
The filing discusses OECD model rules for implementing a minimum global effective tax rate of 15% and notes January 2026 guidance introducing a "Side-by-Side Safe Harbor" that, if elected, exempts US domestic operations from being taxed by global minimum tax rules but does not exempt foreign subsidiaries from local minimum tax requirements. Provision for income taxes increased from $7,249 million to $14,834 million for the three months ended March 31, 2026, and the effective tax rate increased from 17.3% to 19.2%, with acquisition-related tax integration costs and SBC-related benefits impacting the quarter. Alphabet states these OECD rules did not have a material effect on its income tax provision for the quarter but warns that as more countries enact global minimum tax rules its effective tax rate and cash tax payments could be affected in the future.
Key facts
- Provision for income taxes was $14,834 million for the three months ended March 31, 2026, with an effective tax rate of 19.2%. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | realized | -13.5% | Provision for income taxes was $14,834 million for the three months ended March 31, 2026, with an effective tax rate of 19.2%. |