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Goldman Sachs has predicted that the tax changes of US President Donald Trump will knock billions off its earnings.
In a filing to regulators, the investment giant has said that its fourth-quarter results, which are due to be submitted in January, will be affected by $5bn (£3.7bn) as an outcome of the tax changes that are being brought in by the administration of Donald Trump.
Two-thirds of the total will be due to the changes to US corporate income tax. The repatriation taxes of the Trump administration will be a one-time levy on money that are held offshore. Firms will have to pay 15.5 percent on cash and liquid assets, and eight percent on non-liquid assets.
Trump brought in the Tax Cuts and Jobs Act on the 22nd of December. The said act will bring down corporate tax rates from 35 percent to 21 percent, and, in connection with the new rules on moving profits offshore, is anticipated to bring business profits back to the United States from overseas.
Barclays and Shell have also warned that their earnings will suffer an initial hit. However, the companies have said that the tax reforms will raise earnings in the long term.