Apple paid only $2bn tax on $33bn of overseas profit

 
The non-US business had a corporation tax bill of $2.15 billion (Photo: Spencer Platt/Getty Images)
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Gideon Spanier28 October 2014

Apple paid a tax rate of just 6.4% on international profits of $33.6 billion (£20.9 billion) outside America in the year to September, its annual report showed today.

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% 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% of sales yet its $2.15 billion tax bill contrasts with America which had 38% 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%.

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