Microsoft’s Effective Tax Rate: Just 7 Percent

July 22, 2011 3:05 am

Well, this is a trend we haven’t understood that well, but one that we have spotted multiple times – big corporations paying very little tax. We had spotted how much tax GE pays some time back. We spotted this today:

“Microsoft’s effective tax rate was just 7% in the quarter, compared to 25% a year ago, which the company said was “due to a higher mix of earnings taxed at lower rates in foreign jurisdictions.

The company said it produced and distributed a greater number of products and services in regional operations centers in Ireland, Singapore and Puerto Rico, which are all subject to lower tax rates.”

Statistics Source: CNN Money

No wonder, raising the debt ceiling is the Government’s top priority. You need the money to come from somewhere, right?

For individuals as well, we had also spotted John Paulson’s tax some time back.

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