Microsoft Reports Nearly 40 Percent of Global Income in Ireland, Pays $28.7 Billion in Corporate Taxes Worldwide

Microsoft attributed nearly 40 percent of its $196 billion global income to Ireland in a mandatory public country-by-country compliance report. The report listed 0. It recorded low profit margins in France and Italy.

Microsoft stated it follows all relevant tax laws in each European country and the EU as a whole. The company added that it is subject to payroll, value-added and property taxes in addition to taxes on profits. Microsoft VP and deputy general counsel in Europe Jeff Bullwinkel said the company had the second-highest corporate tax bill in the world at $28.7 billion, including $6.3 billion paid in the EU.

Bullwinkel also said Microsoft spent $176 billion on capital expenditures and $89.2 billion on R&D across all markets. Europe passed a directive in 2021 requiring corporations to submit public country-by-country tax reports. The New York Times reported that US companies avoided paying at least $40 billion in taxes using such havens.