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Apple paid only 2 pct tax on earnings outside US

5:20 PM, Nov 4, 2012   |    comments
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Apple Inc. is paying a rate of only 1.9 percent income tax on its earnings outside the U.S.

The world's most valuable company paid $713 million in tax on foreign earnings of $36.8 billion in the fiscal year ended Sept. 29, according to a regulatory filing. Foreign earnings rose 53 percent from fiscal 2011, when the iPhone and iPad maker paid 2.5 percent income tax.

The tech giant's foreign tax rate compares with the general U.S. corporate tax rate of 35 percent.

Apple may pay some income taxes on its profit to the country in which it sells its products, but it minimizes them by using various accounting moves to shift profits to countries with low tax rates. Other multinational corporations also use such tax techniques, which are legal.

The Associated Press

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