Headquarters of Apple in Ireland will pay an increased tax rate of 15% starting in 2024

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Throughout the company’s history, Apple has always taken the most profitable path available to it. As evidenced by their savvy decision to locate their corporate headquarters in Ireland, one of the lowest-tax jurisdictions. All of that is about to change, as businesses in Ireland will be required to pay 15% tax instead of the usual 12.5%.

This move has been public knowledge for some time, but what’s new is that this increment was intended to take place in 2023, but has been pushed out to 2024, which is a huge boon to Apple. In part, this shift is due to a lack of progress in the global tax crisis.

The reason why Apple chose Ireland as its headquarters is simple: it’s a great location for the company to operate from. Taxes in Ireland are considerably lower than in other countries. Only a handful of nations, including Ireland, have a tax rate as low as 12.5%, whereas the majority of countries have a far higher tax rate. What’s amazing is that Google’s headquarters in Ireland are also in Ireland, following in the footsteps of Apple.

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Ireland’s economy will benefit greatly from this decision. The fact that computer companies have chosen Ireland as their home base is a wonderful boon for the country, which has very little to offer in terms of money. However, this means that other countries will not be able to enjoy the same benefits as Apple, as the company only pays taxes in Ireland.

Even though the United States requested a 21% rise in the business tax, no one agreed. The G7 nations decided to raise the worldwide tax rate to 15%. The OECD (Organization for Economic Cooperation and Development) first announced an agreement in 2019 and discussions will begin in 2020. The proposal was originally scheduled to be implemented in 2023, but was pushed back to 2024 due to a lack of funding.

The plan initially had three main goals, including the payment of tax by every company where they choose to sell or buy goods; the payment of tax by companies at the minimal rate; and the taxation of digital goods in the jurisdiction of the client.

Furthermore, the OECD admitted that the early deadline was only a gimmick to raise the pressure, but the effort failed. The tax deal is moving at a normal pace and will continue to do so for the foreseeable future. To make matters worse, the United States is placing numerous roadblocks in the way, including the requirement to obtain Congress’ consent before any further action.

There is no guarantee that the United States will comply with these demands. We’re all curious to see how this shift impacts Apple’s bottom line.

Also read: Apple has been challenged again by Epic Games in an antitrust case related to its App Store

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