Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 351

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 351
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68 |      235 |
| Other countries |        511 |      516 |        2,677 |    2,541 |
| Total(c)(d)     |      4,016 |    3,624 |        5,978 |    6,416 |

(a) Although our US Group companies expect to generate sufficient taxable profits to utilise existing Federal deferred tax assets, the application of the new Corporate Alternative Minimum Tax

(CAMT) rules has resulted in a position where the future tax benefit derived from utilisation of Federal deferred tax assets is limited and consequently these deferred tax assets are included

as “unrecognised” in this table.

(b) Deferred tax assets in Mongolia include US$ 419million ( 2023 : US$ 310million ) from tax losses that expire if not recovered against taxable profits within 8years . In addition, amounts have

been recognised as deferred tax assets relating to anticipated future deductions. Tax losses and other deferred tax assets have been calculated in accordance with the Oyu Tolgoi

Investment Agreement and Mongolian legislation. The interpretation of the Investment Agreement by the Mongolian Tax Authority is under dispute and has been referred to international

arbitration. Differences in interpretation of the Investment Agreement and Mongolian legislation could have a material impact on the amount and/or period of recovery of deferred tax assets.

(c) US$ 2,561million ( 2023 : US$ 2,455million ) of the unrecognised assets relate to realised or unrealised capital losses, the recovery of which depends on the existence of capital gains in future

years. There are time limits, the shortest of which is one year , for the recovery of US$ 249million of the unrecognised assets ( 2023 : US$ 543million ).

(d) In addition to the unrecognised deferred tax assets in this table, the Group has accumulated UK foreign tax credits of US$ 1.4billion ( 2023 : US$ 1.3billion ). The credits are not refundable but

would be available, if needed, to shelter any UK tax in respect of profits arising in the Escondida business.

16 Inventories Recognition and measurement I nventories are measured at the lower of cost and net realisable value, primarily on a weighted average cost basis. Third-party production purchased for our own use that is ordinarily interchangeable in accordance with IAS 2 “Inventories” is valued on the same basis,