c-RTR4MPEF-Chance Chan

Apple is avoiding billions in taxes—and Trump’s plan might fail to change that

$257 billion

Apple has a cash reserve of $257 billion, out of which $240 billion are held overseas.

Published   |  Photo by Reuters/Chance Chan
c-RTR4MPEF-Chance Chan
$257 billion

That’s more than the combined GDP of Finland and Jamaica, enough to build 12 border walls in the US, more than the market capitalization of General Electric, and enough to buy 395 million iPhones.

c-RTR4MPEF-Chance Chan
$257 billion

But also, considering the large chunk that is held overseas, that’s a lot of money that the US is not able to tax.

Apple doesn’t have to pay US taxes on those $240 billion as long as it keeps it abroad. It saved some $36 billion in 2016, when the total cash hoard was smaller, at $216 billion.

c-RTR4MPEF-Chance Chan
$257 billion

Apple is not alone. Other companies avoid taxes by keeping an estimate of some $2 trillion outside the US.

They might not be convinced to bring that money back even if president Donald Trump’s tax plan gets approved. Among other reasons, some tax rates abroad (like in Ireland, for Apple) would still be more attractive.

Published

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