(MENAFN) Amgen Inc is predicting to earn tax expenses of 6-6.5b USD over time, as it repatriates cash it has collected around the world because of the new US tax law signed by President Donald Trump on Friday.
To prompt American companies to bring home the over 2.6t USD held abroad, the law sets a one-time tax repatriation rate of 15.5%for cash and cash-equivalents and 8% for illiquid assets.
According to the company, its future US revenue generally will be taxed at the 21% US corporate income tax rate, while its revenue elsewhere will be at 10.5%, reduced by foreign tax credits.
Amgen said that the tax expenses from moving its cash back to the country will impact its current generally accepted accounting principles (GAAP) earnings forecast, without impacting its non-GAAP forecast.
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