Amazon UK Unit Pays $8 Million Corporation Tax As Sales Hit $17.5 Billion

LONDON: Inc’s major UK subsidiary, Amazon UK Services Ltd., paid simply 6.three million kilos ($Eight million) in company tax in 2019 regardless of the group reporting over $17.5 billion in gross sales in Britain, accounts printed on Wednesday present.

Amazon mentioned the low determine mirrored the underlying situation of its UK enterprise.

“Corporation tax is predicated on income, not revenues, and our income have remained low given retail is a highly-competitive, low margin enterprise and we proceed to take a position closely,” the corporate mentioned in a press release.

Amazon doesn’t publish its UK income. British gross sales are reported largely by an online of Luxembourg-based firms, principally Amazon EU Sarl, which can also be topic to UK tax on a portion of its earnings. However, that firm reported a tax credit score of 294 million euros final 12 months.

Amazon has confronted criticism for its tax practices within the UK for years and is at present combating a authorized battle with the European Commission over claims, which Amazon denies, that it obtained unfair tax benefits from Luxembourg.

Last week, the corporate printed a report on its tax contribution to Britain which mentioned the group incurred taxes of 293 million kilos in 2019.

However, that determine was virtually fully made up of nationwide insurance coverage, a type of social safety tax on workers’ wages, enterprise charges, a type of native property tax, taxes on imported items and stamp duties on land purchases.

Other retailers say Amazon’s tax environment friendly construction offers the Seattle-based group an unfair benefit over British rivals who face bigger company, payroll and native tax payments.

The 2019 accounts for Amazon UK Services Ltd, which employs over 25,000 individuals, present the corporate additionally saved 17 million kilos in tax because of the UK’s remedy of share awards to employees, which is extra beneficiant than the remedy supplied by another nations.

($1 = 0.7748 kilos)

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