Baku. 4 December. REPORT.AZ/ Tax reform legislation approved by US Senate on December 2, is expected to be adopted by the Congress and signed by US President in the coming days.
Report informs referring to Interfax, in accordance with the new legislation, US corporations will be able to repatriate profits from abroad with a low percentage.
After the new legislation went into effect, repatriation of deferred foreign profits for cash and cash-equivalent earnings was determined as 14.5 %. In addition, corporate taxes will slash from 35 % to 20 % or 22%.
The New-York Times writes that as a result of concession, local business will save 500 billion of additional source of financial means. The research shows that US companies have about 3 trillion of dollars in foreign accounts. For instance, Apple has 252 billion dollars in foreign banks, Pfizer has 22 billion dollars. Plenty of US technology and pharmaceutical companies have large accounts abroad.
Repatriation will allow American companies operating abroad to pass additional investments in US economy or pay dividends to its shareholders.
Report’s analytical group states that repatriation of foreign profits of American companies will pose serious threat for global currency market. The vast part of the business money is kept in other currencies and if small part of the funds will be converted into dollar from Euro, Swiss francs, Japanese yen etc., it may cause panic in the global currency market and lead to the devaluation of the currencies of those countries.