Goldman taking $5 billion hit in Q4 earnings coming from completely new tax law

Goldman Sachs said on Friday the idea expects fourth-quarter earnings to decrease by about $5 billion due to the completely new U.S. tax law signed by President Donald Trump last week.

Around two-thirds of the $5 billion decrease is usually due to repatriation tax, Goldman said in a statement with the U.S. Securities as well as Exchange Commission.

However, the impact of the tax legislation may differ coming from the estimate, according to the bank.

Congress last week approved a U.S. tax overhaul, the biggest in 30 years, which includes steep tax cuts for corporations as well as wealthy taxpayers.

The completely new law significantly lowers the income tax rate for U.S. companies—to 21 percent coming from 35 percent—allowing them to repatriate cash coming from overseas, as well as modifies numerous deductions, among various other alterations.

The tax overhaul will allow Apple to bring back its $252.3 billion foreign cash pile without a major tax hit—a long-standing company goal.

Drugmaker Amgen last Friday also said the idea expects to incur tax expenses of $6 billion to $6.5 billion over time as the idea repatriates cash the idea has accumulated around the entire world because of the completely new law.

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