Company: LILA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001712184-25-000137
Chunk: 34

Company: Liberty Latin America Ltd.
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 2
Chunk 34
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, respectively.

For the three and six months ended June 30, 2025, the income tax benefit attributable to our loss before income taxes differs from the amounts computed using the statutory tax rate, primarily due to the beneficial effects of permanent differences, such as non-taxable income, jurisdictional rate differences and changes in uncertain tax positions. These beneficial impacts to our effective tax rate were partially offset by the negative effects of the net increase in valuation allowances, effects of permanent differences, such as non-deductible expenses, the inclusion of withholding taxes on cross-border payments and net return-to-provision adjustments. For the three months ended June 30, 2025, our income tax benefit reflects our estimate of global minimum tax which has been reduced for updated current and forecasted operating results. For the six months ended June 30, 2025, our income tax benefit reflects the net detrimental effects of the inclusion of global minimum tax. 

For the three and six months ended June 30, 2024, the income tax benefit attributable to our loss before income taxes differs from the amounts computed using the statutory tax rate, primarily due to the beneficial effects of net decreases in valuation allowances and permanent tax differences, such as non-taxable income. These beneficial impacts to our effective tax rate were partially offset by the detrimental effects of withholding taxes on cross-border payments, legislative increase to the statutory tax rate in Barbados, net return to provision adjustments, jurisdictional rate differences, permanent tax differences, such as non-deductible expenses, and changes in uncertain tax positions. For the three months ended June 30, 2024, our income tax benefit reflects our estimate of global minimum tax which has been reduced for changes in legislative landscape and updated current and forecasted operating results. For the six months ended June 30, 2024, our income tax benefit reflects the net detrimental effects of the inclusion of global minimum tax.

65

On July 4, 2025, the OBBBA was enacted. The OBBBA restores, or makes permanent, certain expiring business tax provisions from the Tax Cuts and Jobs Act of 2017, including 100% bonus depreciation, IRC Section 174 expensing for U.S.-based research, and the EBITDA-based business interest expense limitation under IRC Section 163(j). While we continue to analyze the effects of the OBBBA on our consolidated financial statements, we do not expect the OBBBA to have a material impact to income tax benefit or expense on our financial statements.