Microsoft · New York · Germany · Engadget
Microsoft filing indicates how it shifts profits around to reduce its European tax bill
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A new compliance report shows the disconnect between where it makes its money, and where it pays its taxes.
Key facts
- Bullwinkel said that Microsoft had the second highest corporate tax bill in the world (after Apple) at $28.7 billion, including $6.3 billion in the EU
- For instance, the company said it earned nearly 40 percent of its global income ($196 billion) in tax-friendly Ireland, but 0.5 percent in Germany, which is Europe's largest market but has a much
- Following pain caused by the global financial crisis of 2008, Europe passed a directive in 2021 requiring corporations to submit public country-by-country reports
- The company said that it follows all relevant laws in each country and the EU bloc as a whole
Summary
A new mandatory compliance report released by Microsoft shows how it declares profits in different European nations to reduce its tax bill, The New York Times reports. Following pain caused by the global financial crisis of 2008, Europe passed a directive in 2021 requiring corporations to submit public country-by-country reports. Microsoft's report shows a clear disconnect between the two. Microsoft felt compelled to issue a blog post about the report, saying "some figures may look surprising at first.