In a sign of how Medtronic %is making the most of shifting its headquarters to ireland from the U.S., the scientific-instrument firm mentioned it is paying $ 500 million in U.S. earnings tax on $ 9.8 billion of cash and investments that it has transferred to the U.S. from its in a foreign country subsidiaries.
That amounts to a 5% U.S. tax fee on the cash. For U.S.-primarily based companies, income earned out of the country are topic to the 35% U.S. corporate tax rate when repatriated to the U.S.
Medtronic MDT, -3.02% said it’s transferring the money after completing an “internal restructuring” in the wake of its acquisition of Dublin-based Covidien p.c.earlier this year. That acquisition allowed Medtronic to move its headquarters from Minneapolis to Dublin, a so-known as tax inversion move geared toward decreasing the corporate’s tax burden.
U.S. Treasury officials didn’t in an instant reply to a request for comment.
In a securities submitting after the U.S. market’s close, Medtronic mentioned it moved the $ 9.eight billion out of its in another country subsidiaries. Medtronic spokesman Fernando Vivanco stated the company moved the cash to the U.S.
This entry handed through the Full-textual content RSS provider – if that is your content and you’re studying it on anyone else’s web site, please learn the FAQ at fivefilters.org/content-handiest/faq.php#publishers.