Business Technology

Wednesday 21 August 2019

Apple incurred tax charge of €1.8bn in Ireland for 2018

Apple CEO Tim Cook. Photo: Bloomberg
Apple CEO Tim Cook. Photo: Bloomberg
Appeal: Apple’s HQ in Cork.
Adrian Weckler

Adrian Weckler

Apple has filed new accounts detailing profits and tax issues for Apple Operations International, its holding company for most of Apple’s non-US subsidiaries.

In Ireland, the company incurred a tax charge of €1.8bn for 2018, with an “adjustment in respect of prior years” of €356m, bringing the total current income tax to €2.2bn.

The effective tax rate for AOI and its operating companies (AOE and ADI) in Ireland was 14pc.

Apple’s tax affairs in Ireland have been closely scrutinised in recent years, with the company being hit with a €13bn back-tax claim from the European Commission. Both the company and the Irish government have appealed the decision.

Apple Operations International recorded sales of €156bn and a profit of €40bn, according to the accounts.

READ MORE: Microsoft's Irish arm paid $77bn dividend to tech giant last year

A spokesman for the company said: "We’ve been operating in Ireland since 1980 and we're proud of the many contributions we make to the economy and job creation.

"Over the last four years, we’ve spent more than €1.3bn with local companies and our investment and innovation supports more than 27,000 jobs up and down the country.

Appeal: Apple’s HQ in Cork.

"As the largest taxpayer in the world, we know the important role tax payments play in society," he added.

"Since 2008 Apple’s corporate taxes have totaled over $100bn.

"We pay all that we owe according to tax laws and local customs wherever we operate.

“We're proud that Apple is an engine of economic growth and job creation through the fast-growing iOS App Economy and our own expanding workforce across Europe.

"European developers have earned more than $25bn from selling their apps to customers around the world and in the last three years we’ve spent over $35bn with thousands of suppliers across Europe.

"Our investment and innovation supports more than 1.6 million European jobs.”

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