Company: PAGP
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001581990-25-000006
Chunk: 171

Company: PLAINS GP HOLDINGS LP
Filing Date: 2025-02-28
Form: 10-K
Item: Item 16
Chunk 171
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 TaxesAlthough we are organized as a limited partnership, we have elected to be treated as a corporation for U.S. federal income tax purposes and are therefore subject to both U.S. federal and state income taxes.Canadian Federal and Provincial TaxesAll of our Canadian operations are conducted by entities that are treated as corporations for Canadian tax purposes (flow through for U.S. income tax purposes) and that are subject to Canadian federal and provincial taxes. Additionally, payments of interest and dividends from our Canadian entities to other Plains entities are subject to Canadian withholding tax that is treated as income tax expense.Tax Components Components of income tax expense are as follows (in millions):Year Ended December 31,202420232022Current income tax expense:State income tax$2 $2 $1 Canadian federal and provincial income and withholding taxes193 143 83 Total current income tax expense$195 $145 $84 Deferred income tax expense/(benefit):Federal income tax$31 $55 $46 State income tax6 13 11 Canadian federal and provincial income tax(28)(24)105 Total deferred income tax expense$9 $44 $162 Total income tax expense$204 $189 $246 The difference between income tax expense based on the statutory federal income tax rate and our effective income tax expense is summarized as follows (in millions):Year Ended December 31,202420232022Income before tax$1,274 $1,614 $1,409 Net income attributable to noncontrolling interests(967)(1,227)(995)Income taxes attributable to noncontrolling interests(167)(121)(189)$140 $266 $225 Federal statutory income tax rate21 %21 %21 %Income tax expense at statutory rate$29 $56 $47 Deferred tax rate adjustment6 9 7 State income tax, net of federal benefit2 3 3 Income taxes attributable to noncontrolling interests:Canadian federal and provincial income tax113 119 188 Canadian withholding tax52 — — State income tax2 2 1 Total income tax expense$204 $189 $246 

F-46

Table of ContentsIndex to Financial StatementsPLAINS GP HOLDINGS, L.P. AND SUBSIDIARIESNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Deferred tax assets and liabilities are aggregated by the applicable tax paying entity