Warren Buffett‘s Berkshire Hathaway will pay the US corporate tax rate on any income it receives from helping to finance Burger King 's planned takeover of Canadian coffee and doughnuts chain Tim Hortons, according to a person familiar with the deal.

Under the agreement, announced Tuesday morning, the merged company will be based in Canada. For Berkshire, which is providing $3 billion of the total $12.5 billion in financing for the deal, there won't be significant tax savings by having the company based in Canada, the person said.