Microsoft EU filing shows 40% of pretax profits booked in Ireland with only 3% of workforce
By
Skye Jacobs
Summary
Microsoft's EU regulatory filing reveals a significant disparity between where its profits are booked and where its workforce is located. Nearly 40% of the company's pretax income was reported in Ireland, despite only about 3% of its global workforce being based there. This pattern is common among large tech multinationals, highlighting how profits are concentrated in low-tax jurisdictions through legal corporate structures, even as actual business operations and employees are distributed globally.
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Key quotes
· 3 pulledMicrosoft said nearly 40% of its pretax income was booked in Ireland, even though only about 3% of its global workforce is based in the country.
The data shows a familiar pattern in the tech sector: a heavy concentration of profits in low-tax jurisdictions.
The company published a country-by-country breakdown of its finances for the fiscal year ending June 2025, under a European Union rule that requires large multinationals to show where they earn money and pay taxes.
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