Reply to post: Re: Shame they pay no tax elsewhere

Make Apple, er, America Great Again: iGiant to bring home profits, pay $38bn in repatriation tax

Jaybus

Re: Shame they pay no tax elsewhere

I think you missed the part stating that they had already paid the tax in the jurisdiction where they had the money. It is not double taxed. The issue is that the US corporate tax is much higher, one of the highest anywhere. They get a credit for what they pay elsewhere, but they still owe the difference. While they technically owed the difference anyway, they could have what they owe deferred (indefinitely) until they actually brought it back (repatriated it). Since it was over a 35% tax rate, they left it offshore and deferred for many years. The new tax code allows them a one-time tax break to repatriate the cash for cheap, relatively speaking.

So is it a tax break for Apple? Technically, yes, but in practice the US government is getting $38 billion instead of zero. Seems like a good deal to me. 15% of hundreds of billions is much more tax than 35% of nothing.

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