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The publication of annual financial reports this week means we have a full set of 2020 accounts for Google, Apple, Facebook, Amazon and Microsoft (GAFAM).
What do they show? Huge aggregate pre-tax profits of $225bn. And also total tax payments of $33 billion (15% of profits).
What do they show? Huge aggregate pre-tax profits of $225bn. And also total tax payments of $33 billion (15% of profits).
Compared to 2019 the aggregate provision for tax (the effective accounting tax rate) is broadly the same, with some variation within companies (FB down, MSFT up).
Cash taxes paid were down in 2020 compared to 2019, but timing effects when payments are made can influence this.
Cash taxes paid were down in 2020 compared to 2019, but timing effects when payments are made can influence this.
And here is a summary for the five companies for the ten years from 2011 to 2020.
In total, they paid $220 billion of corporate income tax to governments over the decade. This was 16% of their profits.
Apple alone paid more than $100 billion of tax (on $600bn of profit)
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In total, they paid $220 billion of corporate income tax to governments over the decade. This was 16% of their profits.
Apple alone paid more than $100 billion of tax (on $600bn of profit)
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