Apple paid $2bn tax on $33bn of international profits
European Commission has accused Apple of receiving “state aid” in Ireland where it pays a low tax rate
Technology giant Apple paid a tax rate of just 6.4 per cent on international profits of $33.6 billion (£20.9 billion) outside America in the year to September, its annual report showed.
The non-US business had a corporation tax bill of $2.15 billion, although Apple had to pay less immediately as it was able to defer $658 million.
The iPhone giant uses Ireland as its international base because it has a statutory 12.5 per cent tax rate.
But the European Commission has accused Apple of receiving “state aid” as it appears to pay a lower rate.
Apple and Ireland reject those claims. “There’s never been any special deal,” insisted Apple last month.
International generated 62 per cent of sales yet its $2.15 billion tax bill contrasts with America which had 38 per cent of sales and owed $8.62 billion — four times as much — in federal tax.
Apple’s overseas cash pile soared to $137 billion as it chose not to repatriate money to America, where the tax rate is 35 per cent.
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