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Does the "tax rate of 26.3 percent" mentioned refer to how much tax Apple actually paid, or its notional tax rate? For example, here in Australia, Apple had $6
by femto 12y ago
Does the "tax rate of 26.3 percent" mentioned refer to how much tax Apple actually paid, or its notional tax rate?
For example, here in Australia, Apple had $6 billion revenue and paid $80 million tax. Assuming the margins are at least as good as the US, the profit would be $2.4 billion, so Apple's actual tax rate in Australia is 3.4%. Compare that with the theoretical Australian corporate tax rate of 30%, which would put Apple's tax bill closer to $700 million.
http://www.smh.com.au/business/apples-803-million-australian-tax-bill-revealed-20150127-12yrqq.html http://www.smh.com.au/business/apples-803-million-australian...
- robryan 12y agoIt would be actually paid tax. They can externalise a lot of the tax from Australia but have to be paying it somewhere. For instance if they are selling itunes/ app store content via Ireland or another lower tax nation they will still have to pay tax there.
- seanmcdirmid 12y agoApple wouldn't be able to book all the profit in Australia; R&D is done in the states obviously so that value add could be booked over there taxed at US rates. So say an iPhone costs $300 to produce and sells for $600, it might be exported to Australia at $400 or $500, with tax on the difference going to the US.