Microsoft’s Offshore Profit Pile Surges Past $100 Billion
Baker/AFP/GettyImagesMicrosoft Corp.’s stockpile of offshore profits rose to $108 billion, with a 17 percent increase over the past year as the company continues reaping profits in low-tax foreign jurisdictions.
The company crossed the $100 billion mark, making it just the second U.S. corporation — after General Electric Co. — to do so, according to a securities filing July 31. Apple Inc. has more cash abroad than Microsoft, but it already has assumed for accounting purposes that it will pay tax on some of the stockpile and thus has less than $70 billion offshore that would affect earnings directly if repatriated.
What’s keeping Microsoft’s cash abroad is the U.S. tax code. The company would be required to pay the difference between its foreign taxes and the 35 percent U.S. corporate tax rate if it brought the money home.
(that’s a marginal tax, btw – they never explain that when they talk about it so the average person thinks you pay 35% on the whole nut)Charles, Doremus Jessup like this
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