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Microsoft also have hundreds of billions of dollars in overseas cash back to the United States? Taxes paid 13.8 billion U.S. dollars

via:CnBeta     time:2018/2/2 0:01:43     readed:376

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Microsoft's earnings statement said the accounting report includes a net tax deduction of $ 13.8 billion related to the Tax Cut and Jobs Act.

Although Microsoft has not broken down specific items of this tax, the market generally believes that this may be related to Microsoft repatriation of its huge overseas cash reserves to the United States.

According to the Trump tax reform, U.S. foreign multinational cash and other liquid assets returned to the United States, the 15.5% tax rate to pay a one-time tax, compared with the previous 35% tax rate significantly lower. This has given U.S. multinationals a surge in the remittance of overseas cash back to the United States.

CNN said in a January 31 report that Microsoft is the second-largest foreign cash company after Apple. Microsoft did not disclose in the earnings report whether all this large-scale tax payment is a "repatriation tax" that will bring overseas cash back to the United States.

The report said that Microsoft had 138.5 billion U.S. dollars in cash in Q3 2017, almost all of which was overseas.

In addition, the disclosure of the second quarter of 2018 fiscal year shows that Microsoft's total cash assets total 142.8 billion US dollars, an increase over the previous quarter. The Wall Street Journal reported January 31 that Microsoft's chief financial officer Amy Hood declined to say when the company will bring the cash out of the country to the United States.

Microsoft reported a tax payment of $ 13.8 billion in earnings reports, which led to a net financial loss for Microsoft for the quarter. Data map

It is worth noting that this large tax deduction of 13.8 billion US dollars directly led to Microsoft's net financial loss for the quarter.

In the earnings report, Microsoft reported a loss of 6.3 billion U.S. dollars, or 82 cents a share. In contrast, in the same period of 2016, Microsoft reported a profit of 6.27 billion U.S. dollars, or 96 cents per share.

Wall Street Journal analysts said that if the exclusion of the impact of the new tax law, Microsoft's quarterly earnings would be 7.5 billion US dollars profit, earnings per share of 96 cents.

CNN reported that Moody's company estimated that in November 2017, U.S. companies had a total overseas investment of about 1.4 trillion U.S. dollars, of which overseas cash from five major technology companies such as Microsoft, Apple, Google, Oracle and Cisco accounted for One of the 600 billion US dollars.

Earlier in January 2018, Apple said it paid $ 38 billion in tax on cash returned to the United States from abroad, and Apple also promised to invest 30 billion U.S. dollars in the next five years to create 20,000 jobs.

According to the above report, most of the cash returned by the overseas companies to the United States will be used for stock repurchase and shareholder dividends, and some may be used for mergers and acquisitions or other investments. The report predicts that in the near future there will be more companies to issue similar tax information. After Apple, Microsoft also remitted to the United States for the huge amount of cash it has abroad.

On January 30, Microsoft released the second quarter of fiscal 2018 fiscal year (three months ended December 31, 2017) earnings. The earnings report mentions that the quarter's results included a net tax break of 13.8 billion U.S. dollars under Trump's tax reform, which led directly to a net loss for the quarter.

Microsoft's earnings statement said the accounting report includes a net tax deduction of $ 13.8 billion related to the Tax Cut and Jobs Act.

Although Microsoft has not broken down specific items of this tax, the market generally believes that this may be related to Microsoft repatriation of its huge overseas cash reserves to the United States.

According to the Trump tax reform, U.S. foreign multinational cash and other liquid assets returned to the United States, the 15.5% tax rate to pay a one-time tax, compared with the previous 35% tax rate significantly lower. This has given U.S. multinationals a surge in the remittance of overseas cash back to the United States.

CNN said in a January 31 report that Microsoft is the second-largest foreign cash company after Apple. Microsoft did not disclose in the earnings report whether all this large-scale tax payment is a "repatriation tax" that will bring overseas cash back to the United States.

The report said that Microsoft had 138.5 billion U.S. dollars in cash in Q3 2017, almost all of which was overseas.

In addition, the disclosure of the second quarter of 2018 fiscal year shows that Microsoft's total cash assets total 142.8 billion US dollars, an increase over the previous quarter. The Wall Street Journal reported January 31 that Microsoft's chief financial officer Amy Hood declined to say when the company will bring the cash out of the country to the United States.

It is worth noting that this large tax deduction of 13.8 billion US dollars directly led to Microsoft's net financial loss for the quarter.

In the earnings report, Microsoft reported a loss of 6.3 billion U.S. dollars, or 82 cents a share. In contrast, in the same period of 2016, Microsoft reported a profit of 6.27 billion U.S. dollars, or 96 cents per share.

Wall Street Journal analysts said that if the exclusion of the impact of the new tax law, Microsoft's quarterly earnings would be 7.5 billion US dollars profit, earnings per share of 96 cents.

CNN reported that Moody's company estimated that in November 2017, U.S. companies had a total overseas investment of about 1.4 trillion U.S. dollars, of which overseas cash from five major technology companies such as Microsoft, Apple, Google, Oracle and Cisco accounted for One of the 600 billion US dollars.

Earlier in January 2018, Apple said it paid $ 38 billion in tax on cash returned to the United States from abroad, and Apple also promised to invest 30 billion U.S. dollars in the next five years to create 20,000 jobs.

According to the above report, most of the cash returned by the overseas companies to the United States will be used for stock repurchase and shareholder dividends, and some may be used for mergers and acquisitions or other investments. The report predicts that in the near future there will be more companies to issue similar tax information.

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