Apple’s tax tactics in Ireland have landed the company in Congress’ hot seat this year, but another European nation has also helped Apple wiggle its way out of paying massive taxes on its iTunes revenues.
Apple reportedly took advantage of Luxembourg’s complex and corporation-friendly taxation system to get out of paying taxes on its iTunes revenue in Europe. The country has a 29% corporate tax rate, but after negotiating a deal, Apple paid only $25 million in taxes out of the $2.05 billion in iTunes revenue. Apple’s not the only American company exploiting Luxembourg’s tax laws either, with some companies paying less than 1% of revenue.
Here’s how Apple avoids paying nearly all taxes in Europe: