Amazon’s tax optimization continues to thrive in 2020, according to data released by the company and spotted by The Guardian. Despite a sharp increase in turnover in 2020, boosted by the pandemic from which the giant emerged as the big winner like the whole of e-commerce, Jeff Bezos’ group is simply not going to pay corporate tax. Better: he even gets a tax credit.
44 billion euros in turnover and… 0 profit
But where did Amazon’s money go in Europe? The question is valid. In February 2021, when publishing its annual results, Amazon revealed a record record: 320 billion euros in turnover, up 38% year on year, and net profit of 17.7 billion euros, which has almost doubled compared to 2019.
But apparently the Europeans are more of a net loss for the Seattle squad. According to tax documents published by Amazon EU Sarl, the European subsidiary of the American group, 2020 was a very bad year: 1.2 billion euros in net losses, up more than 500 million euros over one year.
However, the group’s turnover in Europe represents one-eighth of global turnover: 44 billion euros. But, like everywhere, no profit… no tax. The group had not paid corporate tax in 2019 either, moreover, because it had recorded more than 700 million euros in net losses.
8.4 million euros in turnover… per employee?
Thanks to the tax optimization that Amazon has implemented in Europe, therefore, and despite a record year in terms of net results and turnover, Amazon, based in Luxembourg, will not pay corporate tax in Europe for the year 2020. The group is even granted a tax credit of 56 million euros, according to data consulted by The Guardian, which he can deduct from his future corporation tax.
But Amazon’s most impressive figure in Luxembourg is undoubtedly that which relates the group’s turnover to the number of employees of the company: Amazon employs, in Luxembourg, only 5,262 people, and therefore each employee would have a net income of 8.4 million euros. Something to make any trader pale …