Apple: 20,000 new jobs and another Apple campus

Apple responds to the US tax reform and wants to invest billions at home. According to Trump's tax reform, the group must pay 38 billion dollars on foreign funds.

Apple: 20,000 new jobs and another Apple campus

Apple has announced billions in investments and 20,000 new jobs in US – also in response to tax reform. The technology group wants to spend at least 30 billion dollars in next five years to create jobs in existing locations, invest in data centers, and build anor large campus. The location for facility to be dedicated to technical customer support is to be announced later this year.

The success story of Apple could only be written in America, stressed CEO Tim Cook. "We are proud to build on our long history of support for US economy." With announced plan, group will contribute 350 billion to US economy, it said.

Apple also expects to pay around 38 billion dollars in taxes on its overseas-owned funds of 252.3 billion dollars. This is roughly in line with expectations of experts following adoption of tax reform last month. For this purpose, group had already returned 36.3 billion dollars.

Prior to reform, profits from Apple and or US companies accumulated abroad were completely deprived of US Treasury's access. When transferred to United States, a tax rate of 35 percent would have been applied. The reform now includes a temporary regime whereby, when foreign assets are transferred to US, only a one-time tax payment of between 8 and 15.5 percent is due.

Apple had previously refused to relocate to US with argument that, given tax rate of 35 percent, this would be detrimental to shareholders. Now, group Chef Cook said that his company "has a deep sense of responsibility to give back to country and to people who have made our success possible." Some of profits relocated from foreign accounts to United States will be channelled into announced investments. However, Apple did not provide any more detailed information.

Date Of Update: 18 January 2018, 12:02
NEXT NEWS