Microsoft Report Shows 40% of Global Income Booked in Ireland to Cut EU Taxes
Updated
Updated · Engadget · Jul 3
Microsoft Report Shows 40% of Global Income Booked in Ireland to Cut EU Taxes
3 articles · Updated · Engadget · Jul 3
Summary
Microsoft’s new EU compliance filing shows it booked nearly 40% of global income—about $196 billion—in low-tax Ireland, while reporting just 0.5% in Germany, Europe’s largest market.
The country-by-country report, required under a 2021 EU transparency directive, highlights a gap between where Microsoft says it earns profits and where its main European business activity occurs; France and Italy also showed thin margins.
Microsoft responded in a blog post that some figures “may look surprising at first,” saying it complies with all tax laws and also pays payroll, VAT and property taxes.
Jeff Bullwinkel, Microsoft’s deputy general counsel in Europe, said the company’s total corporate tax bill was $28.7 billion, including $6.3 billion in the EU, while citing $176 billion in capital spending and $89.2 billion in R&D.
The filing may be the first public report of its kind from a major tech company, and it adds to scrutiny of U.S. multinationals after a separate estimate said such tax havens helped them avoid at least $40 billion.