Income taxes	9 Months Ended
Sep. 30, 2020
Income taxes	NOTE 11 – Income taxes: In the third quarter of 2020, Teva recognized a tax expense of $16 million, on pre-tax loss of $4,459 million. In the third quarter of 2019, Teva recognized a tax expense of $11 million, on pre-tax loss of $292 million. Teva’s tax rate for the third quarter of 2020 was mainly affected by the goodwill impairment charge that does not have a corresponding tax effect and other changes to tax positions and deductions. In the first nine months of 2020, Teva recognized a tax benefit of $147 million, on pre-tax loss of $4,543 million. In the first nine months of 2019, Teva recognized a tax benefit of $159 million, on pre-tax loss of $1,226 million. Teva’s tax rate for the first nine months of 2020 was mainly affected by the goodwill impairment charge that does not have a corresponding tax effect and other changes to tax positions and deductions. The statutory Israeli corporate tax rate is 23% in 2020. Teva’s tax rate differs from the Israeli statutory tax rate, mainly due to generation of profits in various jurisdictions in which tax rates are different than the Israeli tax rate, tax benefits in Israel and other countries, as well as infrequent or discrete items. Teva filed a claim seeking the refund of withholding taxes paid to the Indian tax authorities in 2012. Trial in this case is scheduled to begin in November 2020. A final and binding decision against Teva in this case may lead to an asset write off o f $140 million. The Israeli tax authorities issued tax assessment decrees for 2013-2016, challenging the Company’s positions on several issues. In September 2020, Teva commenced proceedings protesting the 2013-2016 decrees at the Central District Court in Israel. The Company believes it has adequately provided for these items, however, an adverse result could be material.

Income taxes

9 Months Ended

Sep. 30, 2020

NOTE 11 – Income taxes:

In the third quarter of 2020, Teva recognized a tax

expense

of $16 million, on

pre-tax

loss of $4,459 million. In the third quarter of 2019, Teva recognized a tax

expense

of $11 million, on

pre-tax

loss of $292 million. Teva’s tax rate for the third quarter of 2020 was mainly affected by

the goodwill impairment charge that does not have a corresponding tax effect and

other changes to tax positions and deductions.

In the first

nine

months of 2020, Teva recognized a tax benefit of $147 million, on

pre-tax

loss of $4,543 million. In the first

nine

months of 2019, Teva recognized a tax benefit of $159 million, on

pre-tax

loss of $1,226 million. Teva’s tax rate for the first

nine

months of 2020 was mainly affected by

the goodwill impairment charge that does not have a corresponding

tax

effect

and other changes to tax positions and deductions.

The statutory Israeli corporate tax rate is 23% in 2020. Teva’s tax rate differs from the Israeli statutory tax rate, mainly due to generation of profits in various jurisdictions in which tax rates are different than the Israeli tax rate, tax benefits in Israel and other countries, as well as infrequent or discrete items.

Teva filed a claim seeking the refund of withholding taxes paid to the Indian tax authorities in 2012. Trial in this case is scheduled to begin in

November

2020. A final and binding decision against Teva in this case may lead to an

asset write off o

f $140 million.

The Israeli tax authorities issued tax assessment decrees for 2013-2016, challenging the Company’s positions on several issues.

In September 2020, Teva commenced proceedings protesting

the

2013-2016 decrees

the Central District Court in Israel. The Company believes it has adequately provided for these items, however, an adverse result could be material.