Amazon Losses Exempt Firm From Taxes In Luxembourg

Amazon didn’t end up paying any business tax to Luxembourg in 2020, which is home to its European base. The firm’s European retail arm posted a US$1.4 billion loss to the government of Luxembourg per a recent financial filing, which excluded it from having to pay corporate taxes, The Seattle Times reported.

While The Seattle Times reported the filing “is likely to provide fresh ammunition for European policymakers,” the news outlet stated Amazon adhered to the rules of Luxembourg. It also noted that the company pays taxes to different nations in Europe on profits it generates on the retail business and different parts of its operations such as cloud computing and fulfillment hubs.

“Corporate tax is based on profits, not revenues, and our profits have remained low given our heavy investments and the fact that retail is a highly competitive, low-margin business,” an Amazon representative said per the report.

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.