The analyst said Japanese auto manufacturers in Pakistan (Pak Suzuki, Honda Motors and Toyota), Pak-Arab Refinery, and mobile phone service providing companies (Zong, Jazz, U-fone, Telenor) would have possibly
repatriated profit and dividends to their sponsor companies abroad.
Communication sector as per SBP data registered a major spike in
repatriated profit and dividend by increasing to $167.2 million during first seven months of FY 2017-18 from $14.8 million in same period of last year.
Ireland has its large
repatriated profit flows, of course, but these are paid for by the massive increases in exports from the new direct investments, not -- as in New Zealand -- by further borrowings and asset sales on the capital account.
The report by the US Commerce Department's Bureau of Economic Analysis showed that Bermuda was by far the largest source of
repatriated profits.
A higher yen against the dollar, in general, weighs on Japanese exporters because their goods are more expensive in foreign markets while their
repatriated profits shrink.
Efforts are to be made to ensure that the total annual foreign direct investment inflows from China should not be less than the yearly total
repatriated profits and loan repayments to the Chinese investors and government.
In contrast, under current law these dividends or
repatriated profits are taxable in the United States, but with a credit for the underlying foreign income taxes paid on the profits that produced the dividends.
"The associated local currency weakness increases the cost of servicing unhedged foreign currency debt obligations, reduces
repatriated profits in foreign currency and lowers operating margins, as companies are not able to pass on high import costs to the consumer", adds Mr Bate.
The research claims that approximately US$203 billion flowed out of the country in 2015 in the form of
repatriated profits of multinational corporations, money moved into tax havens, and costs imposed by climate change adaptations.
The post Trump plan to cut taxes on businesses,
repatriated profits appeared first on Cyprus Mail .
Japan's major exporters have seen their bottom line dented by the sharp rise in the currency, which makes them less competitive overseas and shrinks the value of
repatriated profits.
