Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 328

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 328
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 where the transaction gives rise to equal and offsetting taxable and deductible temporary differences. Deferred tax is not recognised in respect of investments in subsidiaries and associates and jointly controlled entities where the Group is able to control the timing of the reversal of the temporary difference and it is probable they will not reverse in the foreseeable future. The mandatory exception to recognising and disclosing information related to deferred tax assets and liabilities related to Pillar Two income taxes has been applied as required by IAS 12. The Pillar Two global minimum tax of 15% formulated by the Organisation for Economic Co- operation and Development (OECD) was substantively enacted by the United Kingdom on 20 June 2023, with application from 1 January 2024. Exposure to additional taxation under Pillar Two is immaterial to the Group. Current and deferred tax assets and liabilities are offset when the balances are related to taxes levied by the same taxing authority, there is a legally enforceable right to offset, and it is intended that they be settled on a net basis or realised simultaneously.

| Other relevant judgements - uncertain tax positionsThe Group operates across a large number of jurisdictions and is subject to review and challenge by local tax authorities on a range of taxmatters. Where the amount of tax payable or recoverable is uncertain, whether due to local tax authority challenge or due to uncertaintyregarding the appropriate treatment, judgement is required to assess the probability that the adopted treatment will be accepted. Inaccordance with IFRIC 23 “Uncertainty over Income Tax Treatments”, if it is not probable that the treatment will be accepted, the Groupaccounts for uncertain tax provisions for all matters worldwide based on the Group’s judgement of the most likely amount of the liability orrecovery, or, where there is a wide range of possible outcomes, using a probability weighted average approach. Uncertain tax provisionsinclude any related interest and penalties.The Mongolian Tax Authority has issued a number of tax assessments covering the fiscal years 2013 to 2020, the most recent of which wasreceived in December 2023, which are inconsistent with the Oyu Tolgoi Investment Agreement and Mongolian legislation. The matters underdispute have been referred to international arbitration. As required by Mongolian law, we have paidUS$438million(US dollar equivalent atthe time of payment) in respect of the assessments, includingUS$82millionpaid in the current year, pending resolution of the disputesthrough the arbitration.The assessmentsalso seek to disallow tax deductions, including future