PFE · 10-Q · 2026Q2 · Full report
U.S. Tax Law Changes
PFIZER INC · 2026-08-04 · Importance 47 · Surprise 60 · In source text
The U.S. One Big Beautiful Bill Act was enacted on July 4, 2025 and includes permanent expensing for domestic R&D, permanent bonus depreciation and full expensing of qualified production property. It also reduces the tax rate on foreign earnings under GILTI, now NCTI, from 13.125% to 12.6% beginning in fiscal years 2026 and thereafter. Pfizer noted that provisions have different effective dates in 2025 and 2026 and that additional U.S. government guidance may affect implementation.
Key facts
- On July 4, 2025, the OBBBA was enacted into law in the U.S., including reduction of the tax rate applicable to foreign earnings as GILTI (now NCTI) effective in fiscal years 2026 and thereafter from 13.125% to 12.6%, and permanent expensing and bonus depreciation provisions. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | positive | committed | — | On July 4, 2025, the OBBBA was enacted into law in the U.S., including reduction of the tax rate applicable to foreign earnings as GILTI… |
| cash | positive | committed | — | On July 4, 2025, the OBBBA was enacted into law in the U.S., including reduction of the tax rate applicable to foreign earnings as GILTI… |