Apple, the technology firm giant, will be moving the current headquarters of its global iTunes business from Luxembourg. At the start of this month, they will be heading to their new headquarters located in Ireland.
The company made an announcement last year in September regarding the plan to move and it is now following through. During the time of announcement, Apple has already moved its iTunes assets worth around $9 billion to the island country. Its existing developer contracts have also been moved to one of the entities of the company located in Ireland, Apple Distribution International.
In a note that was sent to all the developers, starting 5th of February, the all of the operations of iTunes under Apple which are done outside the US soil will be done in its new European headquarters located in Cork, Ireland. Some of the businesses that are included in the move will be the iBooks Store, the iTunes Store, the App Store and Apple Music.
After the operation of iTunes has been established in Cork, Apple will start to mark it as the company’s expansion of core business in the country. There are currently 5,500 people employed by Apple in Cork and in an announcement last year, the company expressed its intention of expansion which will create another 1,000 jobs within 18 months.
Cork is the second largest city of Ireland and Apple is currently its largest employer in the private sector. According to an estimate made by economists, the operations conducted by Apple in Ireland will result to an annual amount of $24 billion which will cover investment, taxes and salaries.
There have been previous indications that the company will be moving but it is still viewed as a way of the company to show that European Union officials what they felt despite the rigorous regulations imposed on the technology firm during its operations in Ireland.
The issue started because of the generous tax structure of the country when it comes to corporate businesses. The country only requires 12.5 per cent of tax from corporations that are within its borders while the United States is requiring a 35 per cent tax for corporate firms.
Apple was given a better deal so long as the company decided to moves its European headquarters branch to Ireland. The agreement is that the country will give Apple permission to sell its products and the imposed tax will be less than one per cent.
Many companies are moving because of the issue with tax. For companies moving from and to UAE, it is best to contact a trusted moving company such as Wise Move in Dubai.