“Apple just announced on Wednesday it will bring back hundreds of billions of dollars from overseas to fund investment in the U.S.,” Tae Kim reports for CNBC. “‘Apple, already the largest US taxpayer, anticipates repatriation tax payments of approximately $38 billion as required by recent changes to the tax law. A payment of that size would likely be the largest of its kind ever made,’ the company said in the release.”
“Using the new 15.5 percent repatriation tax rate, the $38 billion tax payment disclosed by Apple means they are planning a $245 billion repatriation,” Kim reports. “The tax overhaul, which President Donald Trump signed into law last month, also lowered the corporate tax rate to 21 percent from 35 percent.”
“After the repatriation tax payment, the company will have $207 billion left over from the move it can use for investments, acquisitions, stock buybacks or larger dividends. Apple said it plans more than $30 billion in capital expenditures in the U.S. during the next five years,” Kim reports. “Apple had $252.3 billion in overseas cash as of the end of September quarter, according to SEC filings, so that means the company is bringing back nearly all of its foreign cash.”
Read more in the full article here.
MacDailyNews Take: Do not overlook Apple’s quintupling of their Advanced Manufacturing Fund from $1 billion to $5 billion, either!
Apple’s Advanced Manufacturing Fund supports innovation among American manufacturers and helps others establish a presence in the US. It is already backing projects with leading manufacturers in Kentucky (Corning, $200 million) and Texas (Finisar, $390 million).
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