Date
28 May 2018
Apple CEO Tim Cook has stressed the tech giant's enormous contributions to the US economy. Photo: Bloomberg
Apple CEO Tim Cook has stressed the tech giant's enormous contributions to the US economy. Photo: Bloomberg

Apple to pay US$38 bln in foreign cash taxes, create 20,000 jobs

Apple Inc. plans to make a one-time tax payment of US$38 billion on profits overseas and boost spending in the United States, the Wall Street Journal reports, amid criticism that it is outsourcing manufacturing and stashing cash abroad.

The technology giant on Wednesday unveiled a five-year plan to invest US$30 billion in the US that will create more than 20,000 new jobs, the newspaper said.

It did not say how much of the capital spending plan is new and how much of its US$252.3 billion in cash abroad, the largest of any US corporation, it will bring home, Reuters reported.

It did say that the total will include building a new facility that initially will house customer-service operations, and US$10 billion to establish data centers across the country, the Journal said.

Moreover, Apple is expanding from US$1 billion to US$5 billion a fund it established last year for investing in advanced manufacturing in the US.

“We have a deep sense of responsibility to give back to our country and the people who help make our success possible,” chief executive Tim Cook said in a statement.

Amid increasing pressure from US President Donald Trump to make investments in the country, the company has stressed that it is contributing billions of dollars to the US economy by doing business with American software developers and suppliers.

Apple said its one-time tax payment was due to the new US tax law, which requires firms to pay a one-time tax of 15.5 percent on overseas profits held in cash and other liquid assets, WSJ said.

Combining the new investments and current spending with US suppliers, Apple estimated it would contribute US$350 billion to the US economy over the next five years, the newspaper said.

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RC/CG

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