Electronic tax

Apple headquarters in Ireland to start paying increased tax of up to 15% from 2024 / Digital Information World

Apple has always found the most profitable route that benefits the company the most. So it can be seen by their shrewd tactic of placing their headquarters in one of the countries that pay the least taxes – Ireland. However, this has all come to an end as Ireland will now have to pay 15% tax instead of the usual 12.5%.

This change has been publicized for a while now, but what’s new is that this increase was supposed to happen in 2023, but has been delayed to 2024, which is great news for Apple. The reason behind this change is the slow progress of the global tax fiasco.

Apple smartly chose Ireland as their headquarters for one main reason. The amount of tax to be paid in Ireland is much lower than that of the various countries. A few countries, including Ireland, have a tax rate as low as 12.5% ​​while most countries have it much higher. What’s amazing is that Apple isn’t the only sneaky one here, Google’s headquarters are also based in Ireland, treading the same path as Apple.

Financially, it is a big step for the Irish economy. Given that Ireland has little to offer in terms of generating money, it’s great that tech giants are choosing the region as their base. However, this means that other countries will not have the same benefits as Apple handles all of its taxes through Ireland and no other European country.

While the United States asked for corporate tax to be increased to 21%, no one agreed to tax the request. The tax has been agreed to be increased globally to just 15% by G7 countries. This agreement was first announced by the OECD (Organization for Economic Co-operation and Development) in 2019 with negotiations starting in 2020. The plan was decided to be executed in 2023, however, it was pushed back to 2024 .

The plan originally had 3 major objectives, namely that each business pays tax where it chooses to sell/buy goods, businesses pay the minimum tax rate, and digital goods taxed in the customer’s country.

Otherwise, OECD confirmed that the first schedule was just a ploy to pressure, but the tactic failed. The slow progress of the tax deal is natural and continues on schedule. To make matters worse, the United States poses several obstacles in its path, including the need to obtain congressional approval before any further action.

It is not yet known whether the United States will accept these requests. We are all very curious how this change will affect Apple’s earnings.

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