fncceo
Diamond Member
- Nov 29, 2016
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As someone who has spent most of his career working overseas, in Asia, Europe, and the Middle East for large corporations I can state some of several reasons that would induce large companies to repatriate their assets.
1. To avoid foreign taxes. Any revenues collected in foreign countries must be declared in those countries and is subsequently taxed. In some cases, at a rate higher than the US.
2. Corporations, being publicly held, need to show earnings on earnings reports and annual statements. Hiding assets off the books make any company look less profitable and affects the stock price negatively. Corporations that regularly pay dividends to investors need to have their cash in country to do that.
3. Investment in capital and R&D. Any company wishing to grow and expand needs to invest in capital plant, research, and product development. Someone of that can be invested overseas if that is where that work is being done. But, some will still have to come back to the US for those uses.
1. To avoid foreign taxes. Any revenues collected in foreign countries must be declared in those countries and is subsequently taxed. In some cases, at a rate higher than the US.
2. Corporations, being publicly held, need to show earnings on earnings reports and annual statements. Hiding assets off the books make any company look less profitable and affects the stock price negatively. Corporations that regularly pay dividends to investors need to have their cash in country to do that.
3. Investment in capital and R&D. Any company wishing to grow and expand needs to invest in capital plant, research, and product development. Someone of that can be invested overseas if that is where that work is being done. But, some will still have to come back to the US for those uses.