Apple allegedly saves almost S$3.5 billion in taxes after routing earnings to Singapore, says FT report
SINGAPORE: A recent report says that Apple was able to save US$2.7 billion (nearly S$3.5 billion) in taxes through booking a significant portion of its foreign profits in Singapore. On Sunday (Nov 8), The Financial Times estimated that the tech giant booked up to US$50 billion (S$63.8 billion) in pretax profit in Singapore this year, US$10 billion more than in the year before. Apple’s Singapore…
According to a recent report by The Financial Times, Apple reportedly saved nearly S$3.5 billion in taxes by routing earnings to Singapore, rather than relying on Ireland. The tech giant booked up to US$50 billion in pretax profit in Singapore this year, which is $10 billion more than the previous year. Singapore's corporate tax rate is 17%, compared to the US's 21%, and Apple's effective tax rate in Singapore has been as low as 10% over the past two years.
Apple previously relied on Ireland for tax savings, but has since transferred profits to Singapore, resulting in $2.6 billion in savings for this year. While Apple's savings in Ireland have been slightly lower this year, the company's shift to Singapore has been a major revelation in terms of tax avoidance, according to Zorka Milin, co-director of the Fact Coalition.
The source did not mention if Apple will continue to route profits to Singapore or if the company's main tax base in Europe will change.
Written by urgent.news from The Independent Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
