Apple's Ireland subsidiary paid Apple US $24.8 billion for 2021
New filings from Apple's Irish head office show that the company's European operations earned $211.1 billion in revenue, of which it paid out $24.8 billion to its US parent.
View from Apple's latest Cork offices. Image Credit: CorkBeo
Apple's counts as one of Ireland's biggest companies, because it funnels income from the company's subsidiaries across Europe. Traditionally, it has done so in order to benefit from Ireland's low tax rate, although that is now changing.
It's also advantageous for Apple to leave money overseas that it has earned from outside the US, rather than repatriating all of it. Consequently, despite an increase in revenue of 42.4% from $148.2 billion in 2020, to $211.1 billion in 2021, little of it has been sent back to Apple US.
Instead, according to the Irish Examiner, the Irish subsidiary has paid its US parent company $24.8 billion for the same period.
The accounts for a financial year ending September 25, 2021, show that Apple has provided for an income tax bill of $11.6 billion. Some $8.5 billion of that is listed as being for corporation tax, but the filings do not break down further into how much is to be paid in Ireland or the US.
Despite the more than 40% rise in revenue, the accounts show that profits fell from $70.3 billion in 2020, to $26 billion in 2021.
The accounts also show that the number of employees at Apple's subsidiaries that report to the Irish division, has rise from 51,255, to 52, 563. More than 6,000 of those work directly for Apple's Ireland operations, which recently added new offices at Horgan's Quay in Cork.
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View from Apple's latest Cork offices. Image Credit: CorkBeo
Apple's counts as one of Ireland's biggest companies, because it funnels income from the company's subsidiaries across Europe. Traditionally, it has done so in order to benefit from Ireland's low tax rate, although that is now changing.
It's also advantageous for Apple to leave money overseas that it has earned from outside the US, rather than repatriating all of it. Consequently, despite an increase in revenue of 42.4% from $148.2 billion in 2020, to $211.1 billion in 2021, little of it has been sent back to Apple US.
Instead, according to the Irish Examiner, the Irish subsidiary has paid its US parent company $24.8 billion for the same period.
The accounts for a financial year ending September 25, 2021, show that Apple has provided for an income tax bill of $11.6 billion. Some $8.5 billion of that is listed as being for corporation tax, but the filings do not break down further into how much is to be paid in Ireland or the US.
Despite the more than 40% rise in revenue, the accounts show that profits fell from $70.3 billion in 2020, to $26 billion in 2021.
The accounts also show that the number of employees at Apple's subsidiaries that report to the Irish division, has rise from 51,255, to 52, 563. More than 6,000 of those work directly for Apple's Ireland operations, which recently added new offices at Horgan's Quay in Cork.
Read on AppleInsider
Comments
So much for that vaunted repatiation of $200B held overseas that Apple implied would have happened in 2018 or shortly thereafter. It did not.
EDIT: A bit more detailed article concerning the Irish story reported by AppleInsider:
https://www.irishtimes.com/business/technology/apple-s-irish-subsidiary-doubles-pretax-profits-to-64bn-1.4871203
I can't see that the Irish Examiner article that is the source for AI says anything similar, AI have added it in. Weird.
That said, according to reporting (from, e.g., the Irish Examiner) Apple has actually repatriated the bulk of its previously not-yet repatriated foreign earnings. It reportedly repatriated nearly $300 billion worth in 2019 and 2020. I haven't read the Irish B1C's myself, but I don't have reason to think the reporting by the Irish Examiner (and others) is wrong.
As for reasons why Apple still issues debt, there are other reasons why it makes sense. For one, even if you're trying to get close to a zero net cash position, having a pile of cash that's largely offset by a pile of debt gives you more flexibility - and more ability to deal with unanticipated developments - than having neither. That's especially the case considering how most of Apple's debt is structured. And the effective cost to Apple of having debt, rather then having less debt and less cash, is very small. It can borrow money at low rates which aren't that much higher than what it's able to safely earn on its retained cash.
But it has, reportedly, already repatriated the bulk of its previously not-yet repatriated foreign earnings.
Its foreign subsidiaries don't repatriate the bulk of their revenues, of course. They can't really do that. A lot of expenses and costs have to come out of those revenues first. But they have been repatriating the bulk of their earnings.