Apple to pay $30 billion tax bill on overseas cash, look into second campus site
Thursday January 18, 2018. 12:00 PM , from Power Page
Apple is about to pay a fairly huge tax bill of $38 billion on its overseas cash.
The company said it will make about $38 billion in tax payments on its overseas cash and plans to open a second U.S. campus as part of a 5-year, $30 billion U.S. investment plan.
Apple has also said that it plans a wave of hiring and investing in the United States and will create 20,000 new jobs via hiring at both campus sites.
The location of the second Apple Campus site will be announced later this year.
Roughly a third of the new spending will be on data centers in which to house the company’s iCloud, App Store and Apple Music Services. Apple presently has data centers in seven states and also on Wednesday broke ground on an expansion of its operations in Reno, Nevada, where local officials granted it tax breaks on a downtown warehouse.
The announced tax payment was roughly in line with what analysts expected from the tax bill, which requires companies to pay a one-time tax on foreign-held earnings whether they intend to bring them back to the United States or not.
Apple currently has $252.3 billion in cash abroad and had set aside $36.3 billion in anticipation on tax payments on its foreign cash. As such, the payment shouldn’t represent a major impact on its cash flow this quarter.
Apple did not indicate how much, if any, of its cash it would actually bring back to the United States.
Stay tuned for additional details as they become available.
Via Yahoo Finance
Feb, Sun 25 - 17:02 CET