LAS VEGAS SANDS CORPLVS
LAS VEGAS SANDS CORP Income Taxes Disclosure
Income Taxes
Income before taxes and noncontrolling interests for domestic and foreign operations is as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In millions) | |||||||||||||||||
| Foreign | $ | 2,691 | $ | 2,129 | $ | 1,889 | |||||||||||
| Domestic | (478) | (169) | (114) | ||||||||||||||
Total income before income taxes | $ | 2,213 | $ | 1,960 | $ | 1,775 | |||||||||||
The components of income tax expense are as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In millions) | |||||||||||||||||
| Foreign: | |||||||||||||||||
| Current | $ | 405 | $ | 193 | $ | 270 | |||||||||||
| Deferred | (22) | 6 | 32 | ||||||||||||||
Total | 383 | 199 | 302 | ||||||||||||||
| Federal: | |||||||||||||||||
| Current | 2 | 11 | 30 | ||||||||||||||
| Deferred | (38) | (2) | 12 | ||||||||||||||
Total | (36) | 9 | 42 | ||||||||||||||
Total income tax expense | $ | 347 | $ | 208 | $ | 344 | |||||||||||
The reconciliation of the statutory federal income tax rate and the Company’s effective tax rate is as follows:
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | ||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
| U.S. federal statutory tax rate | $ | 465 | 21.0 | % | $ | 412 | 21.0 | % | $ | 373 | 21.0 | % | |||||||||||||||||||||||
Foreign tax effects | |||||||||||||||||||||||||||||||||||
Macao | |||||||||||||||||||||||||||||||||||
Tax rate differential | (83) | (3.7) | % | (93) | (4.7) | % | (69) | (3.9) | % | ||||||||||||||||||||||||||
Changes in valuation allowances | 70 | 3.2 | % | 66 | 3.4 | % | 78 | 4.4 | % | ||||||||||||||||||||||||||
Tax exempt gaming operations income | (139) | (6.3) | % | (207) | (10.6) | % | (73) | (4.1) | % | ||||||||||||||||||||||||||
Tax exempt rental income | (53) | (2.4) | % | (50) | (2.6) | % | (54) | (3.0) | % | ||||||||||||||||||||||||||
Other | 3 | 0.1 | % | 10 | 0.5 | % | 5 | 0.3 | % | ||||||||||||||||||||||||||
| Singapore | |||||||||||||||||||||||||||||||||||
Tax rate differential | (75) | (3.4) | % | (47) | (2.4) | % | (45) | (2.5) | % | ||||||||||||||||||||||||||
Nondeductible fixed assets | 34 | 1.5 | % | 33 | 1.7 | % | 28 | 1.6 | % | ||||||||||||||||||||||||||
Other | 39 | 1.8 | % | 23 | 1.2 | % | 33 | 1.9 | % | ||||||||||||||||||||||||||
Other foreign jurisdictions | 22 | 1.0 | % | 16 | 0.8 | % | 2 | 0.1 | % | ||||||||||||||||||||||||||
Effect of cross-border tax laws | |||||||||||||||||||||||||||||||||||
Global intangible low-taxed income | 55 | 2.5 | % | 43 | 2.2 | % | 63 | 3.5 | % | ||||||||||||||||||||||||||
Other | — | — | % | 2 | 0.1 | % | 4 | 0.2 | % | ||||||||||||||||||||||||||
Tax credits | (16) | (0.7) | % | (15) | (0.8) | % | (12) | (0.7) | % | ||||||||||||||||||||||||||
Changes in valuation allowances | 14 | 0.6 | % | (2) | (0.1) | % | (3) | (0.2) | % | ||||||||||||||||||||||||||
Nontaxable or nondeductible items | 4 | 0.2 | % | 12 | 0.6 | % | 6 | 0.3 | % | ||||||||||||||||||||||||||
Other adjustments | (2) | (0.1) | % | (2) | (0.1) | % | — | — | % | ||||||||||||||||||||||||||
| Changes in unrecognized tax benefits | 9 | 0.4 | % | 7 | 0.4 | % | 8 | 0.5 | % | ||||||||||||||||||||||||||
| Effective tax rate | $ | 347 | 15.7 | % | $ | 208 | 10.6 | % | $ | 344 | 19.4 | % | |||||||||||||||||||||||
The Company’s tax rate differential reflects the fact that the U.S. tax rate of 21% is higher than the statutory tax rates in Singapore and Macao of 17% and 12%, respectively.
The Company enjoys an income tax exemption in Macao that exempts the Company from paying corporate income tax on profits generated by gaming operations. The Company will continue to benefit from this tax exemption through December 31, 2027. Net income attributable to LVSC would have been reduced by $90 million, $129 million and $46 million and diluted earnings per share would have been reduced by $0.13, $0.17 and $0.06 per share for the years ended December 31, 2025, 2024 and 2023, respectively, without the consideration of the income tax exemption in Macao. Additionally, certain rental income from commercial property in Macao is exempt from income tax as it is subject to the property tax regime.
On February 7, 2024, the Company entered into a shareholder dividend tax agreement with the Macao government, effective for the period from January 1, 2023 through December 31, 2025, which provided for an annual payment at an applicable rate of gross
gaming revenue as a substitution for a 12% tax otherwise due from VML shareholders on dividend distributions paid from VML gaming profits. The Company has applied for a renewal of the shareholder dividend tax agreement with the Macao government for the period from January 1, 2026 through December 31, 2027. For the year ended December 31, 2023, income tax expense included an anticipated $57 million shareholder dividend tax based on the information available at the balance sheet date. During the three months ended March 31, 2024, the Company reversed the $57 million of income tax expense and recorded $10 million to corporate expense related to the year ended December 31, 2023, to reflect the terms of the new shareholder dividend tax agreement.
In July 2025, the U.S. enacted tax legislation referred to as the One Big Beautiful Bill (“OBBB”). The OBBB includes significant changes to U.S. income tax laws, including tax cut extensions and modifications to the international tax framework with certain provisions effective in 2025 and others effective in 2026 and later years. The OBBB did not have a material impact on the Company’s 2025 effective tax rate. Management will continue to analyze and adjust future amounts as related administrative guidance, notices, implementation regulations, potential legislative amendments and interpretations of the OBBB continue to evolve.
The components of income taxes paid, net of refunds, are as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In millions) | |||||||||||||||||
U.S. federal | $ | — | $ | 8 | $ | 25 | |||||||||||
U.S. state | — | 1 | — | ||||||||||||||
Foreign | |||||||||||||||||
Singapore | 270 | 212 | 150 | ||||||||||||||
Other | 1 | 1 | 1 | ||||||||||||||
Total foreign | 271 | 213 | 151 | ||||||||||||||
Total income taxes paid, net | $ | 271 | $ | 222 | $ | 176 | |||||||||||
The primary tax effected components of the Company’s net deferred tax liabilities are as follows:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| (In millions) | |||||||||||
| Deferred tax assets: | |||||||||||
| U.S. foreign tax credit carryforwards | $ | 1,719 | $ | 2,531 | |||||||
| Net operating loss carryforwards | 244 | 320 | |||||||||
| Research and development | 43 | 29 | |||||||||
| Pre-opening expenses | 36 | 21 | |||||||||
Interest expense carryforward | 22 | — | |||||||||
| Accrued expenses | 15 | 14 | |||||||||
| Stock-based compensation | 6 | 9 | |||||||||
| Provision for credit losses | 1 | 1 | |||||||||
| Other | 4 | 2 | |||||||||
| 2,090 | 2,927 | ||||||||||
| Less — valuation allowances | (1,936) | (2,776) | |||||||||
| Total deferred tax assets | 154 | 151 | |||||||||
| Deferred tax liabilities: | |||||||||||
| Property and equipment | (156) | (213) | |||||||||
| Prepaid expenses | (2) | (2) | |||||||||
| Other | (10) | (2) | |||||||||
| Total deferred tax liabilities | (168) | (217) | |||||||||
Deferred tax liabilities, net | $ | (14) | $ | (66) | |||||||
The Company’s U.S. foreign tax credit carryforwards were $1.76 billion and $2.57 billion as of December 31, 2025 and 2024, respectively, which expire beginning in 2026 and 2025, respectively. The Company’s U.S. interest expense carryforward was $103 million as of December 31, 2025, which does not have an expiration date. There was a valuation allowance of $1.69 billion and $2.46 billion as of December 31, 2025 and 2024, respectively, provided on foreign tax credit carryforwards, interest expense carryforward and other U.S. deferred tax assets, as the Company believes these assets do not meet the “more-likely-than-not” criteria
for recognition. Net operating loss carryforwards for the Company’s foreign subsidiaries were $1.94 billion and $2.59 billion as of December 31, 2025 and 2024, respectively, which expire beginning in 2026 and 2025, respectively. There are valuation allowances of $242 million and $314 million as of December 31, 2025 and 2024, respectively, provided on the net deferred tax assets of certain foreign jurisdictions, as the Company believes these assets do not meet the “more-likely-than-not” criteria for recognition.
A reconciliation of the total amounts of deferred tax asset valuation allowance, is as follows:
| December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In millions) | |||||||||||||||||
| Balance at the beginning of the year | $ | 2,776 | $ | 3,879 | $ | 4,083 | |||||||||||
| Additions | 34 | 5 | — | ||||||||||||||
| Deductions | (874) | (1,108) | (204) | ||||||||||||||
| Balance at the end of the year | $ | 1,936 | $ | 2,776 | $ | 3,879 | |||||||||||
Undistributed earnings of subsidiaries are accounted for as a temporary difference, except deferred tax liabilities are not recorded for undistributed earnings of foreign subsidiaries deemed to be indefinitely reinvested in foreign jurisdictions. The Company does not consider current year’s tax earnings and profits of its foreign subsidiaries to be indefinitely reinvested. Beginning with the year ended December 31, 2015, the Company’s major foreign subsidiaries distributed, and may continue to distribute, earnings in excess of their current year’s tax earnings and profits in order to meet the Company’s liquidity needs. To the extent the Company has indefinitely reinvested earnings in foreign jurisdictions, it does not expect withholding taxes or other foreign income taxes to apply should these earnings be distributed in the form of dividends or otherwise.
A reconciliation of the beginning and ending amounts of unrecognized tax benefits, is as follows:
| December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In millions) | |||||||||||||||||
| Balance at the beginning of the year | $ | 148 | $ | 141 | $ | 136 | |||||||||||
| Reductions to tax positions related to prior years | — | — | (3) | ||||||||||||||
| Additions to tax positions related to current year | 8 | 8 | 8 | ||||||||||||||
Exchange rate fluctuations | 1 | (1) | — | ||||||||||||||
Balance at the end of the year(1) | $ | 157 | $ | 148 | $ | 141 | |||||||||||
____________________
(1)Includes interest and penalties of $30 million, $25 million and $19 million accrued as of December 31, 2025, 2024 and 2023, respectively. The Company recognizes interest and penalties, if any, related to unrecognized tax positions in the provision for income taxes in the accompanying consolidated statement of operations.
As of December 31, 2025, 2024 and 2023, unrecognized tax benefits of $40 million, $38 million and $36 million, respectively, were recorded as reductions to the U.S. foreign tax credit deferred tax asset. As of December 31, 2025, 2024 and 2023, unrecognized tax benefits and related interest and penalties of $117 million, $110 million and $105 million, respectively, were recorded in “Other long-term liabilities.”
Included in the unrecognized tax benefit balance as of December 31, 2025, 2024 and 2023, are $127 million, $123 million and $122 million, respectively, of uncertain tax benefits that would affect the effective income tax rate if recognized.
The Company’s major tax jurisdictions are the U.S., Macao and Singapore. The Company could be subject to examination for tax years beginning in 2021 in Macao and Singapore and tax years 2010 through 2015 and 2020 through 2024 in the U.S. The Company believes it has adequately reserved and provided for its uncertain tax positions; however, there is no assurance the taxing authorities will not propose adjustments that are different from the Company’s expected outcome, and it could impact the provision for income taxes.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 6, 2026 | Showing above |
| 2024 | Feb 7, 2025 | |
| 2023 | Feb 7, 2024 | |
| 2022 | Feb 3, 2023 | |
| 2021 | Feb 4, 2022 | |
| 2020 | Feb 5, 2021 | |
| 2019 | Feb 7, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 26, 2016 | |
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.