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Apple plans new U.S. campus, to pay $38B in foreign cash taxes

reuters.com

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Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes

#451

Post by avip »

jitix wrote: post #291
benjaminl wrote: post #253

This discussion is missing context. The whole reason that Apple has to pay taxes on foreign income is because unlike almost every other developed nation the US has a worldwide tax system. Almost every other nation has a territorial tax system. The rest of the world with their territorial system taxes income earned within that country, the US rather taxes income worldwide, regardless of where it is earned. For example…

The worldwide tax law sucks even more for an individual. And it makes absolutely no sense when you’re not even a citizen!

Taxes are paid by "tax residence", not by "citizenship". If you live in the US, I bet you enjoy all the greatness of public schools, transportation, legal system, well preserved natural reserves... you should pay for that.

This thread was about US citizens living abroad, which is a whole different issue.

Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes

#452

Post by mixmastamyk »

cjslep wrote: post #434
benjaminl wrote: post #253

This discussion is missing context. The whole reason that Apple has to pay taxes on foreign income is because unlike almost every other developed nation the US has a worldwide tax system. Almost every other nation has a territorial tax system. The rest of the world with their territorial system taxes income earned within that country, the US rather taxes income worldwide, regardless of where it is earned. For example…

Note that US citizens living abroad are still subject to US's worldwide tax. The tax bill only moved corporations from worldwide to territorial tax.

Wonderful, any details on why that’s the case?

Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes

#453

Post by cjslep »

mixmastamyk wrote: post #452
cjslep wrote: post #434

Earlier quoted context omitted.

Note that US citizens living abroad are still subject to US's worldwide tax. The tax bill only moved corporations from worldwide to territorial tax.

Wonderful, any details on why that’s the case?

Nope. Feel free to pose the question to any of the House/Senate representatives who hurriedly signed the bill because it was certainly considered in the legislation according to worldwide news outlets. I hope you don't get a canned response answer.

Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes

#454

Post by WalterBright »

guyzero wrote: post #407
WalterBright wrote: post #201

Earlier quoted context omitted.

> No it wasn't. Most people thought What matters was what investors thought. And as a follower of the financial/investing news, there was very much an expectation of a large corporate tax cut. > alienated moderate Senators like Collins or McCain Both voted for it. > not to do with macro economic effects The size of the tax cut was certainly enough to significantly affect the economics of a datacenter investment.

"The size of the tax cut was certainly enough to significantly affect the economics of a datacenter investment." So without a tax cut Apple would have just let users suffer? Hardly. Users drive DC investments, not tax policy. There's no tax cut in the universe that's going to get Yahoo to build a new DC in Nevada.

Investments are made if the cost<benefit. Reducing the cost (via tax cuts) means more things become worth investing in.

Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes

#455

Post by pentae »

cjslep wrote: post #434
benjaminl wrote: post #253

This discussion is missing context. The whole reason that Apple has to pay taxes on foreign income is because unlike almost every other developed nation the US has a worldwide tax system. Almost every other nation has a territorial tax system. The rest of the world with their territorial system taxes income earned within that country, the US rather taxes income worldwide, regardless of where it is earned. For example…

Note that US citizens living abroad are still subject to US's worldwide tax. The tax bill only moved corporations from worldwide to territorial tax.

Corporations > People

Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes

#456

Post by bnferguson »

jjeaff wrote: post #449
KKKKkkkk1 wrote: post #426

Earlier quoted context omitted.

Does that transition to a territorial system apply only to corporations or do individuals count too? American expats are among the few in the world who have to pay taxes to the mothership no matter how long they live abroad.

If you are living abroad, you only have to pay tax on your income in excess of ~$110k

But you still have to file, which is not only a pain, rather expensive. My tax prep bill last year was around 1200 EUR in the Netherlands on top of my Dutch tax prep.

Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes

#457

Post by cavisne »

stevenwoo wrote: post #413
TheSpiceIsLife wrote: post #332

Earlier quoted context omitted.

> What is little known about this tax bill > But all this has now changed I live in Australia. As a casual outside observer, can you inform me as to whether this tax bill has passed in to legislation, or is likely to?

It passed, but there are parts of the bill that only last ten years (those applying to personal/small business taxes), and then those tax rules revert to the previous version after ten years unless they are passed again under non-Byrd rules in the Senate. https://www.bloomberg.com/news/articles/2017-11-14/how-the-b...

Which will of course be extended as no government would survive a personal tax increase

Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes

#458

Post by kgwgk »

fyfy18 wrote: post #436
benjaminl wrote: post #253

This discussion is missing context. The whole reason that Apple has to pay taxes on foreign income is because unlike almost every other developed nation the US has a worldwide tax system. Almost every other nation has a territorial tax system. The rest of the world with their territorial system taxes income earned within that country, the US rather taxes income worldwide, regardless of where it is earned. For example…

> For example, if a British company earns income in Germany, its pays German taxes on its German income. This isn’t entirely accurate (heh, taxes are complicated). The company would most likely pay VAT/sales tax in Germany, but would pay corporate/income tax in the U.K. If your customer is a VAT registered business you would usually exclude the VAT, unless they are based in the same jurisdiction as you (it doesn’t ma…

VAT is paid by consumers, not companies. In principle, companies just collect the tax from their customers and send to the state the part that they are not transferring to their providers (but of course, taxes are complicated).

Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes

#459

Post by marvin »

benjaminl wrote: post #253

This discussion is missing context. The whole reason that Apple has to pay taxes on foreign income is because unlike almost every other developed nation the US has a worldwide tax system. Almost every other nation has a territorial tax system. The rest of the world with their territorial system taxes income earned within that country, the US rather taxes income worldwide, regardless of where it is earned. For example…

Wait a minute. Does this tax bill end the situation where e.g. Google earns $100 million/year in my European home country, but pay only $150,000 in taxes to my home country, using an Irish holding company to ensure their net tax rate (including to the US) on this amount is only a few percent? That would seem like a very good thing to me. The current situation is quite unjust.

Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes

#460

Post by madeofpalk »

benjaminl wrote: post #253

This discussion is missing context. The whole reason that Apple has to pay taxes on foreign income is because unlike almost every other developed nation the US has a worldwide tax system. Almost every other nation has a territorial tax system. The rest of the world with their territorial system taxes income earned within that country, the US rather taxes income worldwide, regardless of where it is earned. For example…

Wait, is that actually the case here?

    For example, if a British company earns income
    in Germany, its pays German taxes on its German
    income. But if a US company earns income in
    Germany it pays both German taxes and US taxes.
If a British company sets up a company in Germany and that 'subsidiary' earns income in Germany and pays tax in Germany, and then wants to send its money back to the British company, does the British company need to pay tax on that?

Isn't that money new income for the British company, and therefor would be taxed accordingly? I think that's the key here.

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