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  • Apple Pays Just 2% in Taxes on Huge Foreign Revenue


    Based on the findings of a comprehensive review of Apple's most recent regulatory filing, Apple only paid a small amount in taxes on its huge overseas revenue for the 2012 fiscal year.

    Specifically, based on the numbers provided by Apple to the U.S. Securities and Exchange Commission, Apple paid only 1.9 percent in income taxes on the $36.8 billion in revenue the company earned overseas for the calendar year that ended in September.

    This foreign tax rate, as you might imagine, is dramatically less than the U.S. corporate tax rate of 35 percent. Simply put, this savvy tax technique is a popular approach used around the corporate world.

    Like other big companies, Apple leaves cash overseas. If it brought it home to the U.S., it would have to pay U.S. corporate taxes on the money.
    By the end of September, the total amount of cash that Apple retains overseas is a staggering $82.6 billion and climbing. That's up significantly just from the $74 billion it had overseas at the end of June.

    Source: Washington Post
    This article was originally published in forum thread: Apple Pays Just 2% in Taxes on Huge Foreign Revenue started by Michael Essany View original post
    Comments 22 Comments
    1. drigo1178's Avatar
      drigo1178 -
      i really dont see the point of this? most if not all internationally operating companies do this.

      If apple made all that money in the US and didnt pay taxes on it (which is not mentioned in your story and IMO would have made stronger argument) then this would be a completely different story.
    1. GmAz's Avatar
      GmAz -
      Quote Originally Posted by drigo1178 View Post
      i really dont see the point of this? most if not all internationally operating companies do this.

      If apple made all that money in the US and didnt pay taxes on it (which is not mentioned in your story and IMO would have made stronger argument) then this would be a completely different story.
      Apple is a US company. No matter how little or how much money they pay in taxes over seas, that money is going to foreign governments and yet they love being a US company. Its BS for Apple and all corporations that do it.
    1. fungusfeet's Avatar
      fungusfeet -
      Quote Originally Posted by drigo1178 View Post
      i really dont see the point of this? most if not all internationally operating companies do this.

      If apple made all that money in the US and didnt pay taxes on it (which is not mentioned in your story and IMO would have made stronger argument) then this would be a completely different story.
      Would be very surprised if Apple are paying 35% tax on U.S income. All the big companies in the UK are exploiting tax loopholes and paying 2% tax on UK income so the government over here is squeezing more taxes from the pople.
    1. feidhlim1986's Avatar
      feidhlim1986 -
      Quote Originally Posted by GmAz View Post
      Apple is a US company. No matter how little or how much money they pay in taxes over seas, that money is going to foreign governments and yet they love being a US company. Its BS for Apple and all corporations that do it.
      You don't understand how multi-national companies work do you?
    1. trevorrawson's Avatar
      trevorrawson -
      I guarantee you that if our corporate tax was as little as 1.9% for Apple then they would bring all that money back here. If Apple wants to keep their money over seas then that's fine. It's "their" money.
    1. mcdad03's Avatar
      mcdad03 -
      It's stupidity by the US government. Why would apple or any large company want to pay the ridiculous taxes. They have enough money to just take their ball and play somewhere else and it's at the expense of the US. 10% of all those billions is better than none.
    1. Slimz's Avatar
      Slimz -
      Wow. This is appalling to be quite honest.

      What's worse, is that if this was Samsung people would be here ******** and point fingers and calling them Samsuck and everything else - or talking about patent lawsuits.. This is worse than anything Samsung has done. This is playing the system, and clearly evident of business practices at Apple, though not surprising.
    1. Breezer23's Avatar
      Breezer23 -
      The US has one of the highest corporate tax rates in the developed world. This is why this happens. Unfortunately, Obama thinks corporations are the devil - which is odd since they donate a lot to him and he's never worked for one.
    1. spazturtle's Avatar
      spazturtle -
      Quote Originally Posted by Breezer23 View Post
      The US has one of the highest corporate tax rates in the developed world. This is why this happens. Unfortunately, Obama thinks corporations are the devil - which is odd since they donate a lot to him and he's never worked for one.
      It wouldn't matter how high or low US corp tax is, Apple and every other company are exploiting a dumb EU law that means they pay stupidly low tax. and those of us in the EU can't change it because there is no system in the EU for change to happen.
    1. scottjl's Avatar
      scottjl -
      Why should Apple pay taxes on income earned in another country? I'm sure they are paying taxes in that country already. Apple isn't a "US company." They are an international company employing thousands of people outside the US borders. I'm all pro-USA, but nothing entitles the USA to collect revenue on something just because they have some ties to the USA. An iPhone assembled in China, shipped to and sold in Europe shouldn't owe any taxes on that particular phone to the USA.
    1. bigboyz's Avatar
      bigboyz -
      Avoiding paying taxes in your own country..hmm. Right now it is a negative for Romney. Why not a negative for large businesses? Loopholes are usually created by the less fortunate. In this case countries that need $$ and jobs. Rich people, countries and business all take advantage of this fact. "Made in America"?? Since when? We pretty much outsource everything except oxygen..just saying :]
    1. steve-z17's Avatar
      steve-z17 -
      Quote Originally Posted by Slimz View Post
      Wow. This is appalling to be quite honest.

      What's worse, is that if this was Samsung people would be here ******** and point fingers and calling them Samsuck and everything else - or talking about patent lawsuits.. This is worse than anything Samsung has done. This is playing the system, and clearly evident of business practices at Apple, though not surprising.

      If you read the article all the way through you would know that Apple is not the only company that does this. It's very common among big companies including Samsung. It's good of you to recognize that Samsung has done bad things though lol.
    1. GeoffS4's Avatar
      GeoffS4 -
      Quote Originally Posted by drigo1178 View Post
      i really dont see the point of this? most if not all internationally operating companies do this.

      If apple made all that money in the US and didnt pay taxes on it (which is not mentioned in your story and IMO would have made stronger argument) then this would be a completely different story.
      So your point is "Everyone else is doing it, so it's OK!".

      Yeah....that's great...love the logic.
    1. Lysias55's Avatar
      Lysias55 -
      Quote Originally Posted by Slimz View Post
      Wow. This is appalling to be quite honest.

      What's worse, is that if this was Samsung people would be here ******** and point fingers and calling them Samsuck and everything else - or talking about patent lawsuits.. This is worse than anything Samsung has done. This is playing the system, and clearly evident of business practices at Apple, though not surprising.
      You don't understand this article do you? Why would apple pay our tax rate if they earned the money in another country? They need the money there to expand there. Now money they earn here they'll have to pay our tax rate, get it? Probably not
    1. steve-z17's Avatar
      steve-z17 -
      Quote Originally Posted by GeoffS4 View Post
      So your point is "Everyone else is doing it, so it's OK!".

      Yeah....that's great...love the logic.
      It's not logic.......it's called business. This has been going on for awhile, it's not like it just started and Apple just decided to join all the other companies....These businesses don't want to have to pay all that extra money when they can keep it....it makes sense.
    1. tongxinshe's Avatar
      tongxinshe -
      Quote Originally Posted by GmAz View Post
      Apple is a US company. No matter how little or how much money they pay in taxes over seas, that money is going to foreign governments and yet they love being a US company. Its BS for Apple and all corporations that do it.
      A lot of foreign companies pay corporate taxes to the US at the same time.
    1. alanjf's Avatar
      alanjf -
      Quote Originally Posted by bigboyz View Post
      Avoiding paying taxes in your own country..hmm. Right now it is a negative for Romney.
      For the record, this is not true. Romney never avoided paying taxes. He released them, despite what some people were saying. The evidence speaks for it self. These races keep getting uglier and uglier and it becomes more and more difficult to weed out all the propaganda from the truth.
    1. drigo1178's Avatar
      drigo1178 -
      Quote Originally Posted by GeoffS4 View Post
      So your point is "Everyone else is doing it, so it's OK!".

      Yeah....that's great...love the logic.
      I love uneducated responses.

      Quote Originally Posted by GmAz View Post
      Apple is a US company. No matter how little or how much money they pay in taxes over seas, that money is going to foreign governments and yet they love being a US company. Its BS for Apple and all corporations that do it.
      can you tell my exactly why you think earnings made somewhere else needs to be taxed in the US?


      oh ad FYI - working and earning in multiple states with different states taxes, also makes you file separate state taxes...just thought you should know. just so you could wrap your brain around the thought of it.
    1. LSxPwrdZ's Avatar
      LSxPwrdZ -
      I don't blame Apple at all for doing what they are doing to avoid paying as much tax's. If anybody else was in their situation you would take the avenue of less taxs as well. This is why we didn't need another 4years of Obama. There is currently incentive to have corporations manufacture overseas and not here in USA. Until that changes and we help our own and tax overseas more things will never change and jobs will continue to suck in USA.

      So with that said shame on all you idiots that voted Obama!
    1. NewdestinyX's Avatar
      NewdestinyX -
      Quote Originally Posted by LSxPwrdZ View Post
      So with that said shame on all you idiots that voted Obama!
      People voted for "getting more stuff from Santa Obama" this time. America is changed forever now. We'll never see another WorldWar 2 selfless, self-reliant generation again. . He did what he set out to do in '08: fundamentally change America. And sadly it's for the worst. The damage that will be done to America in the next 4 years is incalculable.

      But - upward and onward. I still have my cool gadgets to play with! :-/