Business Technology

Thursday 5 December 2019

Google unit pays tax of $256m to Exchequer

The Google company's costs of sales arise from amortisation of intangible assets of $603m. Stock photo: Jonathan Brady/PA
The Google company's costs of sales arise from amortisation of intangible assets of $603m. Stock photo: Jonathan Brady/PA

Gordon Deegan

A Dublin-based Google subsidiary with no direct employees paid $255.56m (€231m) in corporation tax to the Exchequer here last year.

The corporation tax payout by Google Europe International Technology Unlimited followed pre-tax profits increasing by 45pc to $2.039bn.

The company's revenues are generated from royalty income for providing intellectual property rights to other group undertakings, and the surge in pre-tax profits followed revenues increasing by 31pc, to $2.62bn from $1.99bn.

Over the past three years, the Google unit has paid more than $515m in corporation tax.

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The scale of the tax paid last year by the Google unit contributed to the 26pc surge in overall corporation tax collected by the State - where a total sum of €10.4bn was paid.

The Google company's costs of sales arise from amortisation of intangible assets of $603m. 

The organisation last year paid out a dividend of $3.29bn, and this followed a dividend payout of $1.95bn in 2017. 

The company paid another dividend of $532m this year.

Last year, the Google group of companies here increased its workforce by 1,000 to 8,000 staff members.

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