President Biden has said he is aiming to raise as much as $2.5 trillion over 15 years through measures such as increasing corporate tax rates to 28 percent from 21 percent and imposing a minimum tax on global profits.
Already, France has levied a 3 percent tax on revenue from digital services provided within the country, an effort to wring some revenue from internet companies — a tax that Amazon says it is paying — but European Union-wide policies have been thwarted by opposition from Washington.
In its filing, covering 2020, Amazon avoids paying Luxembourg’s corporate tax, which is a tax on profit. In 2020, Amazon’s overall international segment reported operating profit of $717 million. And in the first three months of this year, the entire company’s profit soared to $8.1 billion, an increase of 220 percent from the same period last year. Amazon’s first-quarter filings, released last week, also showed that it made $108.5 billion in sales, up 44 percent, as more customers made purchases online because of the pandemic.
The company’s filing with Luxembourg was reported earlier by The Guardian.
A spokesman for Amazon, Conor Sweeney, said the company paid all taxes required in every country in which it operated.
“Corporate tax is based on profits, not revenues, and our profits have remained low given our heavy investments and the fact that retail is a highly competitive, low-margin business,” he said.
Article source: https://www.nytimes.com/2021/05/04/business/amazon-corporate-tax.html