Apple pays just 1.9% tax on its overseas income
Apple paid just $US713 million in tax on foreign earnings of $36.8 billion for the fiscal year to September 29, a regulatory filing has revealed.
According to News.com.au, the result means the company paid an effective tax rate of just 1.9% on the income it earned outside the US.
The tax result was accomplished by routing offshore profits through its Irish and Dutch subsidiaries to its holding companies in the Caribbean. The techniques employed by Apple are reportedly all legal.
In May, it was revealed that Apple’s tax strategies have led to the company paying an effective worldwide tax rate of just 9.8%.
Techniques reportedly used by Apple include directing all iTunes sales from Europe, the Middle East and Africa through Luxembourg, as well as collecting patent royalties in Ireland at a company tax rate of 12.5%, rather than 35% in the US.