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Microsoft sits on a pile of money outside the US
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Published onAugust 4, 2015
published onAugust 4, 2015
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It’s well known thatMicrosoft is a wealthy companywith its current market valuation at $374.4 billion. An estimated $108.3 billion of the profits are sitting outside the US and this is something the US Government is keen to change. However, current law in the U.S. isn’t making it attractive for Microsoft and other US companies to capitulate with Internal Revenue currently in a legal battle with the company over the matteraccording to a Bloomberg report.
There is a possible compromise in the works with the US government supporting the proposal of an amnesty tax rate of 14 percent. U.S. law states that companies only have to pay tax when they repatriate the money from abroad so it’s understandable that Microsoft is happy to leave the money where it is.
Microsoft gets a better tax rate on its earnings abroad with low-tax countries such as Ireland, Singapore and Puerto Rico offering as little as 3.1 percent tax rates. If Microsoft brought its money back to the US, it would have to pay the difference between the foreign tax rate and the US tax rate which currently sits at 35 percent and that’s a whole lot of money.
What are your feelings on this? Should Microsoft bring the money home? Are they being too greedy?
Radu Tyrsina
Radu Tyrsina has been a Windows fan ever since he got his first PC, a Pentium III (a monster at that time).
For most of the kids of his age, the Internet was an amazing way to play and communicate with others, but he was deeply impressed by the flow of information and how easily you can find anything on the web.
Prior to founding Windows Report, this particular curiosity about digital content enabled him to grow a number of sites that helped hundreds of millions reach faster the answer they’re looking for.
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Radu Tyrsina