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China announces πŸ”‰ new tax exemption, encourages companies πŸ‘ like Apple to continue investment


China has today shared that it will be offering a temporary tax exemption for foreign companies.

China's Finance Ministry said the goal with this initiative is to "promote the growth of foreign investment, improve the quality of foreign investment and encourage overseas investors to continuously expand their investment in China."

The New York Times notes that while there was no specific mention of this Chinese tax break being spurred by the recent US tax overhaul, the country's vice finance minister said the government would "take proactive measures" due to the overhaul.

Analyst Gene Munster believes that Apple will repatriate $214B of its overseas cash at the one-time 15.5% tax rate afforded by the recent changes.

We may see Apple take advantage of both the new US and Chinese tax changes as it continues its global growth and moves closer to becoming the first trillion-dollar company.

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