Global Business Travel Group, Inc.GBTG

Global Business Travel Group, Inc. Income Taxes Disclosure

10-KFiled Mar 9, 20267 min read
Income Taxes
The following table summarizes the Company’s domestic (U.S.) and foreign results (non-U.S.) before income taxes and share of income from equity method investments.
Year ended December 31,
(in $ millions)202520242023
Domestic$59 $(3)$(37)
Foreign88 (68)(108)
Income (loss) before income taxes and share of income from equity method investments$147 $(71)$(145)
The components of (provision for) benefit from income taxes consist of the following:
Year ended December 31,
(in $ millions)202520242023
Current taxes:   
Domestic$(30)$(11)$(14)
Foreign(25)(21)(7)
Current income tax expense(55)(32)(21)
Deferred taxes:   
Domestic(16)(35)34 
Foreign31 1 (4)
Deferred tax benefit (charge)
15 (34)30 
(Provision for) benefit from income taxes$(40)$(66)$9 
Following adoption of ASU 2023-09, the table below sets forth a reconciliation of amounts and percentages computed by applying the U.S. federal statutory income tax rate of 21% to income before income taxes and share of income from equity method investments to provision for income taxes for the year ended December 31, 2025.
Year Ended December 31, 2025
(in $ millions, except percentages)
Amount
 (in $ millions)
Percentage
Income before income taxes and share of income from equity method investments
147
n/a
Tax provision at U.S. federal statutory tax rate
3121.00 %
State and local income taxes, net of federal income tax effect*
117.55 %
Foreign tax effects
Belgium:
Changes in valuation allowance
(3)(2.05)%
Other
10.74 %
France:
Changes in Valuation allowance(36)(24.45)%
Germany:
Return to provisions
(1)(0.62)%
Other
10.74 %
Japan:
21.20 %
Mexico:
Return to provisions
(3)(1.87)%
Netherlands:
Changes in valuation allowance1611.01 %
Gain on remeasurement of previously held Uvet GBT investment
(10)(6.88)%
Return to provisions
10.74 %
U.K.
Statutory tax rate difference between U.K. and U.S.
42.99 %
Equity-based compensation
32.01 %
Fair value movement on earnout derivative liabilities
(15)(10.49)%
Merger and acquisition costs
10.99 %
Return to provisions
42.58 %
Other
(2)(1.26)%
Other foreign jurisdictions:
21.43 %
Effect of cross-border tax laws (Base-erosion and anti-abuse tax)
1510.06 %
Effect of cross-border tax laws (impact of U.S. foreign branches)
74.44 %
Research and development tax credits
(2)(1.57)%
Non-taxable or non-deductible items:
Fair value movement on earnout derivative liabilities
(7)(4.90)%
Merger and acquisition costs74.83 %
Effect of section 162(m) limitation
21.54 %
Equity-based compensation(3)(1.76)%
Changes in unrecognized tax benefits
85.31 %
Other adjustments:
Return to provisions
64.10 %
Provision for income taxes
4027.41 %
*State taxes in California, New jersey, New York City and New York state make up the majority (greater than 50%) of the tax effect in this category.
The Company’s effective tax rate for the year ended December 31, 2025 was 27.41% primarily due to non-deductible expenses offset by non-taxable income (gain from the movement in the fair market value on the earnout shares and the gain on remeasurement of the Uvet GBT investment) and a net reduction in valuation allowances.
As previously disclosed, prior to the adoption of ASU 2023-09, the table below sets forth a reconciliation of amounts computed by applying the U.S. federal statutory income tax rate of 21% to loss before income taxes to (provision for) benefit from income taxes for the years ended December 31, 2024 and 2023.
Year ended December 31,
(in $ millions, except percentages)20242023
Statutory tax rate21.00%21.00%
Tax benefit at statutory tax rate$15$31
Changes in taxes resulting from:  
Foreign branch accounting /corporate restructuring(28)7
Income not subject to tax1 1 
Equity-based compensation(4)(5)
Fair value movement on earnout derivative liabilities(14)3 
Transaction costs(10)(3)
Other expenses not deductible for tax(5)(2)
Minimum taxes(8)(4)
Local, state, and withholding taxes(1)(5)
Change in valuation allowance(2)(17)
Change in enacted tax rates6—
Foreign tax rate differential33
Return to provision adjustment(12)1 
Tax settlement and uncertain tax positions(8)— 
Other, net1(1)
(Provision for) benefit from income taxes$(66)$9
Effective tax rate92.96%6.32%

The Company’s effective tax rate for the year ended December 31, 2024 was significantly higher than the statutory rate of 21% primarily due to expenses not deductible for taxes.

The Company’s effective tax rate for the year ended December 31, 2023 was lower than the statutory tax rate of 21% primarily due to changes in valuation allowances and expenses not deductible for taxes.
Following adoption of ASU 2023-09, the following table presents supplemental cash flow information related to income taxes paid (net of refunds received) for the year ended December 31, 2025:
(in $ millions)
Amount
U.S. Federal$29 
U.S. State and Local3
Foreign:
U.K5
Germany3
Others
12
Total income tax paid (net of refunds)$52 
The significant components of the Company’s deferred tax assets and liabilities are as follows:
As of December 31,
(in $ millions)20252024
Deferred tax assets:  
Net operating loss carryforwards$650 $339 
Pension liability69 68 
Interest expense deduction restriction123 64 
Operating lease liabilities29 26 
Equity-based compensation17 20 
Property and equipment12 15 
Accrued liabilities40 35 
Goodwill146 166 
Other intangible assets
101 95 
Other11 3 
Valuation allowance(376)(149)
Deferred tax assets822 682 
Netted against deferred tax liabilities(524)(414)
Deferred tax assets as presented in the consolidated balance sheets$298 $268 
Deferred tax liabilities:  
Foregone foreign branch/deferred tax assets$(290)$(288)
Other intangible assets(206)(122)
Uncertain tax positions
(87)— 
Operating lease ROU assets(24)(21)
Property and equipment(3)(4)
Goodwill(2)(2)
Other(11)(13)
Deferred tax liabilities(623)(450)
Netted against deferred tax assets524 414 
Deferred tax liabilities as presented in the consolidated balance sheets$(99)$(36)
The Company recognizes deferred taxes on the undistributed earnings of foreign subsidiaries, as these earnings are not deemed to be indefinitely reinvested. Foreign deferred taxes liabilities of approximately $6 million and $3 million as of December 31, 2025, and 2024 , respectively, have been provided on these earnings.
The Company has net operating loss (“NOL”) carryforwards related to its global operations of approximately $2,482 million, of which $2,310 million have an indefinite life. The remaining NOL carryforwards will expire as follows:
(in $ millions)
Amount
2026-2030$112
2031-203535
2036-204525
As of December 31, 2025 and 2024, the Company had valuation allowance on its deferred tax assets of $376 million and $149 million, respectively, that is related primarily to unrealized NOLs. The increase in the valuation allowance during the year ended December 31, 2025 includes approximately $210 million recognized in connection with the acquisition of CWT during the year, which gave rise to additional deferred tax assets that were not supported by sufficient sources of taxable income. As of December 31, 2025, a valuation allowance has been created against deferred tax assets relating to approximately $368 million of the total gross losses, and other acquired attributes, where the Company believes it is less likely that it will be able to utilize these assets in the future. For the deferred tax assets related to remaining NOLs against which there is no valuation allowance, the Company believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize these deferred tax assets.
Many jurisdictions are introducing or have recently introduced tax legislation that aims to impose minimum taxation in an attempt to raise taxes (e.g. Organization for Economic Co-Operation and Development's Base Erosion and Profit Shifting ("BEPS") Pillar 2 measures and the U.S. Inflation Reduction Act ("IRA")). The Company does not expect a material impact from the implementation of this legislation but continues to monitor and assess any future impacts.
As of December 31, 2025 and 2024, the Company has recognized a tax liability of $164 million and $16 million, respectively, associated with uncertain tax positions, including interest and penalties thereon, arising from differences between amounts recorded in the consolidated financial statements and amounts expected to be included in tax returns. The majority of uncertain tax positions are under discussions with tax authorities and the Company does not believe that the outcome of current and future examinations will have a material impact on its consolidated financial statements. The movement of uncertain tax position liability is as follows:
Year Ended December 31,
(in $ millions)
202520242023
Balance, beginning of the year$16 $11 $4 
Acquisition related
142 — — 
Decrease in tax positions related to prior years
(1)— (1)
Release due to expiry of statute of limitations
— (2)— 
Foreign exchange movement
2 (1)— 
Increases to tax positions related to the current year
5 8 8 
Balance, end of the year$164 $16 $11 
There was no settlement of uncertain tax position liability during any of the years presented.
The Company recognizes interest and penalties accrued related to unrecognized tax benefits as part of the provision for/ benefit from income taxes in its consolidated statement of operations. During the years ended December 31, 2025 and 2024, the Company recognized $15 million and $3 million, respectively, of interest and penalties. There were no material amounts of interest or penalty charged (credited) to the Company’s consolidated statements of operations for the year ended December 31, 2023.
The Company is subject to taxation in various countries in which the Company operates. As of December 31, 2025, tax years for 2015 through 2025 are open to examination by the tax authorities in the major tax jurisdictions.
On July 4, 2025, the One Big Beautiful Bill Act ("OBBB") was signed into law, which includes a broad range of tax reform provisions affecting businesses, including extending and modifying certain key Tax Cuts & Jobs Act provisions.
For the provisions effective in 2025, there was no material impact to the Company's effective tax rate for the year ended December 31, 2025.
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Historical Timeline

Fiscal YearFiled
2025Mar 9, 2026Showing above
2024Mar 7, 2025
2023Mar 13, 2024
2022Mar 21, 2023

About Income Taxes Disclosures

The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.

Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.

Other Available Disclosures

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