advertisement
advertisement

Apple says it will pay $38 billion in repatriation taxes on offshore profits

Apple shed some light Wednesday on what it plans to do with the roughly $250 billion it’s had stashed in overseas accounts. Under the new tax code, Apple can now bring the money back home at a greatly reduced 15.5% tax rate. The old federal tax rate was 35%. Here’s what the company says it’ll do … Continue reading “Apple says it will pay $38 billion in repatriation taxes on offshore profits”

Apple says it will pay $38 billion in repatriation taxes on offshore profits
[Photo: Flickr user Dru Bloomfield]

Apple shed some light Wednesday on what it plans to do with the roughly $250 billion it’s had stashed in overseas accounts. Under the new tax code, Apple can now bring the money back home at a greatly reduced 15.5% tax rate. The old federal tax rate was 35%.

advertisement

Here’s what the company says it’ll do with the money:

  • Pay about $38 billion of it to government in repatriation taxes.
  • Spend more than $30 billion to create U.S. 20,000 jobs over the next five years.
  • Open a new campus at a U.S. location that will be announced later.
  • Expand its Advanced Manufacturing Fund (announced last spring) from $1 billion to $5 billion.
  • Contribute $350 billion to the U.S. economy over the next five years.

Here’s how Apple gets to that big number: “Combining new investments and Apple’s current pace of spending with domestic suppliers and manufacturers—an estimated $55 billion for 2018—Apple’s direct contribution to the US economy will be more than $350 billion over the next five years, not including Apple’s ongoing tax payments, the tax revenues generated from employees’ wages and the sale of Apple products.”

advertisement
advertisement
advertisement
advertisement

About the author

Fast Company Senior Writer Mark Sullivan covers emerging technology, politics, artificial intelligence, large tech companies, and misinformation. An award-winning San Francisco-based journalist, Sullivan's work has appeared in Wired, Al Jazeera, CNN, ABC News, CNET, and many others.

More