Apple paid just 2% tax overseas on its profits last year, most US firms pay little to no foreign tax too

Apple paid just 2% tax overseas on its profits last year, most US firms pay little to no foreign tax too
Apple end-of-fiscal-year filing revealed that it paid 1.9% tax on its overseas profits, which are a pretty significant amount. It gave to governments $712 million on $36.8 billion in overseas profits. 

This is done via fairly straightforward and legal accounting maneuvers which almost every US corporation with significant business abroad is utilizing as an obligation to its shareholders not to pay more taxes than the legal minimum.

A survey of how much are lead US companies paying in UK taxes recently found out that Google, Amazon, Starbucks and Facebook paid about 30 million pound sterling to the government coffers on combined sales of 3.1 billion there. 

Apple, Google and a lot of other large companies are lobbying the US government to declare amnesty on bringing their overseas profits home, with a minimal punitive tax charge, or their funds will keep sloshing overseas, but there is no positive development for them yet.

Apple is actually one of the few US companies in the table below that disclose the likely tax rate of repatriated profits it would incur, but most US multinationals pay little to no taxes overseas as well, and the law allows them to.

source: TheGuardian & CTJ.org


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10 Comments

1. DontHateOnS60

Posts: 872; Member since: Apr 20, 2009

Haha, nobody should be surprised by any of this. Companies want to keep their money for obvious reasons! Wouldn't YOU want to keep your money you were earning?

3. Topcat488

Posts: 1416; Member since: Sep 29, 2012

Apple, Google and a lot of other large companies are lobbying the US government to declare amnesty on bringing their overseas profits home. Is there any doubt why our country is in so a dire state... Companies not paying their fair share, and getting more loop hole privileges on top of that... One governor had the audacity to say that corporations are people too... SMH.

4. the_best

Posts: 139; Member since: Oct 14, 2012

the thing is, its not their money! tax is what you pay for the previliage to do business or live in that country.. if you dont like it, then go live in the cayman islands!

5. Heritor

Posts: 47; Member since: Nov 05, 2012

If you knew how a monetary worked you would be outraged by the idea of a corporation paying little to no taxes. Let me give you a small crash course on how a monetary system is supposed to work. this was the original system the American government made back in its founding. Government creates money, money gets distributed via purchases for goods and services, and government re-aquires the money via taxes on business, property, and sales. Corporation until the 20th century were viewed as threats to the political power of US citizen and the founding fathers when they created the US created a charter system. In the charter it says your company is a gift of the american people to the person or group of people starting the Corporation. Corporations did not have the right to own property, they were taxed on capital gains, and they would be forcibly disbanded after a couple of years or their services were unnecessary. Now there is a difference between a corporation and a small business. A small business is something that is privately owned and operated and doesn't have much in the ways of monetary power. A small local apothecary, local store, a tavern, or an Inn. A corporation is a large entinity that is publicly owned and generally pulls profits that rival a GDP of a small nation. Due to the amount of money a corporation could pull the founders of America viewed them as dangerous institutions that left uncheck would steal the rights of the people. The Emancipation proclamation and the new amendments after the civil war saw Corporate lawyers arguing that Corporations have the right of constitutional personhood. it took 200 cases before thy were granted this right. From there it was a corporate campaign to impose the income tax on citizens in favor of the abolishment of taxes on corporations. In short if you like the idea these companies do not have to pay taxes on what they gain then you must love paying taxes on your labour.

6. jmoita2

Posts: 930; Member since: Dec 23, 2011

Shameful. If I tried it, i would end up in federal prison for tax evasion.

2. Atrixboyyy

Posts: 607; Member since: Nov 03, 2011

How is this news?

10. Droiddoes unregistered

iphonearena.com, duh

7. theBankRobber

Posts: 682; Member since: Sep 22, 2011

And yet I got a threatening letter from the IRS saying if I didn't pay the $230 I owe for my 2011 federal taxes, they were coming g to take my house and car and other properties. While these companies are getting away like this and the government is handing money out left and right for people who won't get a damn job and stop having g kids, I get threatened over just $230. How f'n sad is that, they wonder why no real hard working American want to file and/or pay their taxes because how were the ones getting screwed. Here's my big F U to our government.

9. jmoita2

Posts: 930; Member since: Dec 23, 2011

They need your $230 to give the rich, AKA corporations more tax cuts.

8. BadAssAbe

Posts: 508; Member since: Apr 22, 2011

This is way over my head, not sure if this is good or bad. Give the government more money? Let them keep their money? Make apple richer or make congressman richer by sitting around? No one wins

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