XML 29 R19.htm IDEA: XBRL DOCUMENT v3.21.2
Income taxes
 9 Months Ended
Sep. 30, 2021
Income taxes
NOTE 11 – Income taxes:
In the third quarter of 2021, Teva recognized a tax expense of $76 million, on
pre-tax
 
income of $382 million. In the third quarter of 2020, Teva recognized a tax expense of $16 million, on
pre-tax
loss of $4,459 
million. Teva’s tax rate for the third quarter of 2021 was mainly affected by amortization and interest expense disallowance.
In the first nine months of 2021, Teva recognized a tax expense of $235 million, on
pre-tax
income of $833 million. In the first nine months of 2020, Teva recognized a tax benefit of $147 million, on
pre-tax
loss of $4,543 million. Teva’s tax rate for the first nine months of 2021 was mainly affected by amortization,
 
impairments,
legal settlements and interest expense disallowance.
The statutory Israeli corporate tax rate is 23% in 2021. 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 be
n
efits in Israel and other countries, as well as infrequent or
non-recurring
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 on October 29, 2021. A final and binding decision against Teva in this case may lead to an asset write off of
$141 million.
The Israeli tax authorities issued tax assessment decrees for 2008-2012 and 2013-2016, challenging the Company’s positions on several issues. Teva has protested the 2008-2012 and 2013-2016 decrees before the Central District Court in Israel. The Company believes it has adequately provided for these items, however, adverse results could b
e
 material.