Microsoft Round Island One, Microsoft’s Irish subsidiary, made a profit of 260 billion euros last year, but paid no corporate tax because it “resides” in Bermuda for tax purposes.
A profit equivalent to three quarters of Ireland’s GDP
An Irish subsidiary of Microsoft, named Microsoft Round Island One, which reported 2020 profit of $ 315 billion (260 billion euros at the exchange rate), paid zéro euro tax by having tax residence in Bermuda, according to The Guardian.
The profit generated by Microsoft Round Island One is equivalent to nearly three quarters of Ireland’s Gross Domestic Product (GDP). And yet, the Irish subsidiary of the multinational, whose head office is located in an office of Matheson law firm in Dublin, has no employees other than its directors.
Microsoft subsidiary pays no income tax
This turnover was achieved through the collection of licenses to use Microsoft software around the world, according to this media, which cites as a source the accounts filed with the Irish Companies Register Office for the fiscal year of last year.
The previous year, Microsoft Round Island One had recorded a profit of 10 billion dollars (8.257 million euros).
In the tax return, the company explains that as a Bermuda resident company, it does not pay any income tax.
The company paid a dividend of $ 24.5 billion (€ 20.231 billion) to Microsoft Corporation during the year, followed by an additional special dividend of $ 30.5 billion (€ 25.186 billion).