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Microsoft Disclosure Provides Rare Glimpse of Tax Haven Tactics
The New York Times • • business
Key Points:
- Microsoft released a compliance report revealing how it shifts profits to low-tax countries to reduce its global tax bills by billions of dollars.
- The report, likely the first of its kind by a major U.S. tech company under a new EU directive, showed high returns in tax-friendly jurisdictions and minimal profits in higher-tax countries.
- For the fiscal year ending June 2025, nearly 40% of Microsoft’s pretax income was generated in Ireland, a low-tax haven where only about 3% of its global workforce is employed.
- In contrast, Microsoft earned less than 0.5% of its global profits in Germany, the largest European economy with higher taxes, and under 2% of its worldwide pretax earnings in the rest of Europe excluding Ireland.
