Apple to Pay $38 Billion in Taxes on Cash Overseas

The mobile phone manufacturing giant Apple Inc. stated that it would be paying a one-time tax of about 38 billion dollars on all its cash holdings overseas which would result in the ramping up of overall spending in the United States since it seeks to stress on its contributions to the economy of the US after years of taking criticism for outsourcing the task of manufacturing to the Chinese nation. In a statement released on Wednesday by the most valuable publicly traded company of the world where it laid out its plans which consisted of big dollar figures though it mentioned that much of the money reflected the current pace of spending by Apple. The mobile giant said that it would be investing about 30 billion dollars as the capital amount that it would be spending in the United States over five years which would create more than about 20,000 jobs. This includes a new campus which will consist of a technical support department for customers at the beginning.

In an addition to this, it would be spending about 10 billion dollars for the data centers across the United States and it will also be expanding from one billion dollars to five billion dollars, a fund which it had established in the previous year for the investment in advanced manufacturing in the United States. The 38 billion dollars tax commitment by the mobile manufacturing giant Apple Inc. is the largest ever sum announced in response to the major overhaul of the tax code of the United States that President Donald Trump had signed into law in the previous year. This particular law also included an incentive for the companies in the country for bringing offshore holdings with companies required to pay a one-time tax of 15.5 percent on the profits that it held in cash overseas and any other liquid assets.

The companies in the United States have pushed for the change a long time ago which would enable them to send back home the overseas cash without what they considered an excessive tax hit. On Wednesday the mobile manufacturing giant Apple put forward the tax changes as the main reason for its 38 billion dollar payment. It did not put light on how much of its 252.3 billion dollars in overseas cash holdings it is planning to bring back home, though it will be the vast majority. This is as per the statement in an interview with ABC News by the Chief Executive of Apple Tim Cook.

January 16, 2022 - 03:15
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