The primary overseas branch pays $7.7bn in corporate tax, but disburses $20.7bn in dividends to its California-based parent company.
Apple’s Irish unit paid €7.7bn in corporate tax and almost tripled that amount to its California parent company as dividends after reporting profits exceeding $69bn. The subsidiary, which is facing legal disputes regarding its tax arrangements in Ireland, generated almost $190m daily in revenue from September to the following year. Apple Operations International, based in Cork, reported a $11.7bn increase in annual revenue to $223bn, with a 2% rise in profits. The company also confirmed a payment of $20.7bn in dividends to Apple Inc. during the same period, which are subject to US taxes.
It remains unclear which governments received the taxes paid, equivalent to 11% of profits, as Ireland’s 12.5% corporation tax rate would have resulted in an $8.7bn bill. The total tax bill for the period, including deferred tax charges, amounted to $11bn for Apple Operations International.
Since 1980, Apple has faced criticism over its tax arrangements in Ireland, where its presence has been established. Apple Operations International and its affiliated companies employ roughly 56,600 workers, of which 6,000 are situated in Ireland. In 2020, the European Commission demanded that the tech giant pay a record €13bn (£11.5bn) in back taxes to Ireland. The Commission asserted that Apple had taken advantage of a tax deal that constituted illicit state aid between 2003 and 2014, allowing Apple to pay a maximum tax rate of only 1%, and as little as 0.005% in 2014. Apple contested the order, which was part of the EU’s efforts to curb tax evasion. Subsequently, a Luxembourg court ruled that the commission failed to demonstrate that Apple had profited from the alleged illegal agreement and that Apple was not required to repay taxes to the Irish government.
