nottheaverageactuary

Actuarial news and views from Cape Town and beyond

Big corporations and overseas markets

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A number of large corporations in the US use overseas markets as tax havens. Apple has 90% of it’s cash offshore. Under current US tax laws corporations pay 35% tax on money brought in from overseas markets. Similarly Wal-mart has $76bn in assets overseas. Companies are looking for ways to make use of the money and assets they hold in overseas markets.

This presents asset managers in overseas markets an opportunity to manage large amounts of assets. However for the US this is not a situation to be happy about. Can asset managers in these overseas markets do more to benefit from this ?

Links to articles relating to Apple and Wal-marts overseas holdings are below

Apple’s cah held overseas

Wal-mart overseas tax havens

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One thought on “Big corporations and overseas markets

  1. Thanks Tam for sharing this with us. When I first read it, it sounded counter-intuitive to me. I know a few people who went to go study at universities in America; and the laws were so strict about foreign students working there – they can’t do any work for money – whether it’s waitering or tutoring. So a country that is so strict about giving their citizens opportunities is encouraging foreign investment? I mean the amount of revenues these companies invest, the loans that can be made, spending on large capital project, tax revenues raised from these activities and the multiplier effect and the list goes on and on….

    But when I read the first link on Apple, I saw that Obama is planning to impose a one-time tax on the stockpiled money to encourage cash repatriation… so it may not be long before this trend starts becoming less prominent.

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