Apple has made the announcement that should clarify any doubts that people had suggesting that the organization tries to evade tax but shipping the money in the overseas accounts.
The new Tax repatriation law tries to mend this loophole in the previous system, through which tax returns can be can be evaded to a great deal by moving the cash on overseas account. Now the trump government has made the tax repatriation law. Abiding by the law, Apple is expected to bring back an amount of 25 billion back from the account that were spread in more than one country.
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Apple said it plans to repatriate cash hoarding overseas and is expected to pay around $ 38 billion in taxes. According to the new repatriation tax rate of 15.5%, this means that the company will almost all remit the 250 billion U.S. dollars of cash accumulated overseas to the United States.
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The company has also announced that it will be spending more than 30 billion in the US economy. Among them 10 billion are required to built state of the art data centers that will be huge as well as technically very advanced.
The company also plans to expand the size of its Advanced Manufacturing Fund, created last year, from $ 1 billion to $ 5 billion.
Thus Apple pointed out that the company over the next five years will make more than 350 billion US dollars of the “direct contribution” to the U.S. economy, although it is not clear how the company will reach that figure.
With this news, it can be deduced that the new tax law is definitely making an impact on the US economy. Till now the change seems to be for the good.