Company: BBU
Filing Date: 2025-04-10
Form Type: 20-F
Source: 0001628280-25-017216
Chunk: 504

Company: Brookfield Business Partners L.P.
Filing Date: 2025-04-10
Form: 20-F
Item: Item 19
Chunk 504
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ATED FINANCIAL STATEMENTS

As at December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023 and 2022

NOTE 19. INCOME TAXES

Income tax expense is recognized for the amount of taxes payable by the partnership’s consolidated subsidiaries and for the impact of deferred income tax assets and liabilities related to such subsidiaries.

The major components of income tax expense (recovery) include the following for the years ended December 31, 2024, 2023 and 2022:

                                                                Year ended December 31,                                                             
  (US$ MILLIONS)                                                2024                                       2023                   2022              
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Current income tax expense (recovery)                         $                               646           $        775           $         458  
  Deferred income tax expense (recovery):                                                                                                           
  Origination and reversal of temporary differences             ( 933)                                   ( 712)                 ( 283)              
  Recovery arising from previously unrecognized tax assets      ( 14)                                    ( 121)                 ( 440)              
  Change of tax rates and imposition of new legislations        —                                             3                  ( 54)              
  Deferred income tax expense (recovery)                        ( 947)                                   ( 830)                 ( 777)              
  Total income tax expense (recovery)                           $                            ( 301)           $      ( 55)           $      ( 319)  

The below reconciliation has been prepared using a composite statutory-rate for jurisdictions where the partnership’s subsidiaries operate.

The partnership’s effective income tax rate is different from the partnership’s composite income tax rate due to the following differences set out below:

  (%)                                                               2024       2023        2022  
 ─────────────────────────────────────────────────────────────────────────────────────────────────
  Composite income tax rate                                           27         27          27  
  Increase (reduction) in rate resulting from:                                                   
  Portion of gains subject to different tax rates                  ( 31)      ( 12)           7  
  International operations subject to different tax rates          ( 14)          —       ( 26)  
  Taxable income attributable to non-controlling interests          ( 7)      ( 20)          12  
  Recognition of deferred tax assets