The decision by Apple to place all its European business under the umbrella of a head office in Dublin has paid huge dividends after the tech giant won an appeal at the EU’s General Court.
Apple will not have to pay 13 billion euros in back taxes to the Irish government, as the European Commission had previously ordered. Ireland has one of the lowest corporate tax rates in the European Union, at 12.5 percent, designed to attract multi-national such as Apple. The Irish government had opposed the EU’s attempt to force Apple to pay the 13 billion euros.
After the ruling, Apple defended its tax stance. This case was not about how much tax we pay, but where we are required to pay it. We’re proud to be the largest taxpayer in the world as we know the important role tax payments play in society.” Ireland is Apple’s base for Europe, the Middle East and Africa.
Only Hungary imposes a lower corporate tax rate, at nine percent. In France, the corporate tax rate is 33.33 percent for companies with a turnover of more than 250 million euros, while in Germany it stands at between 30 and 33 percent depending on local rates.