Apple is sitting on a massive cash pile of over $250 billion but almost all of it is held overseas due to tax reasons. However, it appears that the company has decided to bring all of that money to the United States now that a new tax law has been passed. The company has revealed some figures which suggest that it’s going to repatriate almost all of its $250 billion cash pile to the United States.
Apple has confirmed that it’s going to bring back hundreds of billions of dollars in order to fund future investments in the United States. The move may also help increase the company’s capital returns, something that investors will certainly appreciate.
“Apple, already the largest US taxpayer, anticipates repatriation tax payments of approximately $38 billion as required by recent changes to the tax law,” the company said in a press release, adding that a payment of this kind is likely going to be the largest ever made.
With the new 15.5 percent repatriation tax rate, the $38 billion tax payment that Apple has disclosed likely means that the company is bringing back almost all of its $250 billion cash pile.
Once it pays the government, Apple will have almost $207 billion in cash present in the United States which will be able to use for investments, acquisitions, stock buybacks, and increasing dividends for shareholders. Apple says that it’s going to earmark more than $30 billion in capital expenditures in the United States over the next five years.
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