US tech giant Apple has announced major investments in the United States on the back of the country's new tax code working in the company's favor. It indicated plans for a second corporate campus.
Apple said Wednesday it was planning to build another corporate campus and hire 20,000 workers over the next five years as part of a fresh $30-billion (€24.4-billion) investment offensive in the US.
The pledge is an offshoot from the sweeping overhaul of the US tax code championed by President Donald Trump and approved by Congress last month.
Besides dramatically lowering the standard corporate tax rate, the reforms also offer a one-time break on cash being held overseas, whether companies intend to bring back foreign-held earnings or not.
Apple said it would make about $38 billion in US tax payments on its $252.3 billion in overseas cash. The Cupertino, California-based firm did not indicate how much of its cash it would actually bring back to the US.
Apple had already set aside more than $36 billion in anticipation of tax payments on its foreign cash, meaning the new requirements will not represent a major impact on its cash flow this quarter.
The company said it would announce the location of its second campus later this year, with the new one expected to be "devoted to customer support."
hg/jd (Reuters, AP)