INCOME TAX EXPENSE |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | |||||||||||||||||||||||||||||||||||||||
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| Income Tax Expense | Income Tax Expense
Income tax expense was $1,479 million for YTD 2026 (YTD 2025: $380 million). The unadjusted effective income tax rate for YTD 2026 was 25% of income before income taxes. The underlying effective income tax rate on ordinary income for YTD 2026 was 24% after adjusting for the impact of foreign currency translation losses on current and deferred tax balances, changes in rehabilitation provisions relating to non-operating mines, non-deductible foreign exchange losses, the remeasurement of the Hemlo contingent consideration; the impact of Loulo-Gounkoto, gains and losses on the sale of assets, and other non- recurring tax and non-tax adjustments. Currency Translation Current and deferred tax balances are subject to remeasurement for changes in foreign currency exchange rates each period. This is required in countries where tax is paid in local currency and the subsidiary has a different functional currency (typically US dollars). The most significant balances relate to Argentine, Malian and Zambian tax balances. In YTD 2026, a tax expense of $56 million (YTD 2025: $47 million tax recovery) arose primarily from net translation losses on current tax balances due to the strengthening of the Zambian Kwacha as well as translation losses on deferred tax balances due to the weakening of the West African CFA and the Argentine peso against the US dollar. These net translation losses are included within income tax expense. Withholding Taxes For YTD 2026, we have recorded $109 million (YTD 2025: $50 million related to Argentina, Saudi Arabia, Tanzania, and the United States) of dividend withholding taxes related to the distributed earnings of our subsidiaries in Argentina and Tanzania, and undistributed earnings of our subsidiaries in Mali, Saudi Arabia and the United States. United States Tax Reform Under the Inflation Reduction Act signed in August 2022, the United States implemented a 15% corporate alternative minimum tax (“CAMT”) on applicable financial statement income, effective for tax years beginning after December 31, 2022, with CAMT credit carryforwards having an indefinite life. Barrick is subject to CAMT as it meets the requisite income thresholds for a foreign-parented multi- national group. Since its introduction, we have recognized a deferred tax asset (DTA) from the CAMT credit carryforwards, anticipating recovery against future US Federal Income Tax liabilities. In Q1 2026, the IRS outlined additional interim guidance on the CAMT to allow several new adjustments to adjusted financial statement income (AFSI) and modify the scope of certain AFSI adjustments in prior interim guidance. Given potential future developments, the timing and amount of such CAMT recovery may be subject to change pending issuance of final regulations. Organization for Economic Co-operation and Development (“OECD”) Pillar Two model rules These rules apply to multi-national enterprises with annual consolidated revenues of at least €750 million in at least two of the prior four fiscal years immediately preceding the relevant fiscal year, which is reflective of our status. Canada enacted Pillar Two legislation through the Global Minimum Tax Act (“GMTA”), effective for fiscal years beginning on or after December 31, 2023. Certain jurisdictions in which the Group operates have also enacted, or are in the process of enacting, legislation implementing the Pillar Two framework. In accordance with the GMTA, the Group filed its first GloBE Information Return and the related Canadian tax returns for the 2024 fiscal year on June 30, 2026. Consistent with the amendments to IAS 12 Income Taxes issued by the IASB in May 2023, the Group has applied the mandatory temporary exception from the recognition and disclosure of deferred tax assets and liabilities arising from Pillar Two income taxes. Accordingly, no deferred tax assets or liabilities have been recognized or disclosed in respect of Pillar Two legislation. Based on the Group’s assessment of the OECD Transitional Safe Harbor rules, no material Pillar Two current tax expense or liability was identified for Q2 2026. As the law is evolving, both in Canada and elsewhere, we will continue to monitor the impact of this legislation.
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