NEW YORK (P3P) – Amgen Inc (AMGN.O) stated it expects to incur tax bills of $6 billion to $6.5 billion over time because it repatriates money it has gathered around the globe due to the brand new U.S. tax regulation signed by President Donald Trump on Friday.
Among the expense can also be as a result of revaluation of its tax liabilities, the drugmaker stated in a submitting with the Securities and Change Fee.
Amgen didn’t say how a lot of its $38.9 billion in money and different holdings it plans to maneuver again to the US. To encourage U.S. corporations to deliver residence the greater than $2.6 trillion now held abroad, the regulation units a one-time tax repatriation price of 15.5 p.c for money and cash-equivalents and eight p.c for illiquid property.
Amgen stated its future U.S. earnings typically might be taxed on the 21 p.c U.S. company earnings tax price, whereas its earnings elsewhere will typically be taxed in the US at 10.5 p.c, diminished by international tax credit.
It stated the tax bills from transferring its money again to the US will have an effect on its present typically accepted accounting ideas (GAAP) earnings forecast, however is not going to have an effect on its non-GAAP forecast.