A complex network of company headquarters and affiliates enables Apple, Google and many other international companies to reduce their tax burden to zero. The seat in Ireland has always played an important role because corporate taxes are very low there. If the spin-offs belong to the company, they pay a license fee for their own technologies (“Double Irish with Dutch sandwich“), Effective tax rates may be less than one per cent. Although the above tax loopholes have been eliminated by 2020, Ireland is still considered a low-tax country.

The loopholes were eliminated and taxes were increased
However, this particular position will not last long. Ireland agreed to an international agreement Agreement To avoid tax dumping. Ireland’s current 12.5 per cent will be 15 per cent for Apple, Google, Amazon, several pharmaceutical companies and others. It may not seem like much, but considering the billions in sales and profits that are often processed through Ireland, this is significant. 140 countries joined in the effort to avoid competing for lower taxes, allowing richer companies to pay extra lower taxes.

Apple & Ireland Vs. EU Commission
In the case of Apple, everyone knows a long-standing court case. The European Union (EU) has been investigating allegations of illegal state aid against Ireland. Between 2003 and 2016, the illegally granted tax breaks were said to be 13 13 billion – a tax rate of 0.005%. Following a court ruling in favor of Ireland (and Apple) in 2020, the Commission appealed. It may take a few more years for the final decision to be made. Until then, he said, 13 billion had been withheld and would not allow Ireland to return the money raised to Apple.