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.
Source: Washington Post