Bermuda is not only a land of beautiful beaches — as well as a cornerstone of a famed mysterious triangle known for making things disappear — it’s where Google goes to protect billions in profits from the sticky fingers of Uncle Sam.
Bloomberg reports Google filters its business through the offshore tax haven in order to stay in the 2.4 percent corporate tax bracket. On paper, most of its profits made outside of the United States go through Bermuda, where there’s no corporate income tax. Most comparably sized tech companies pay overseas earnings tax rates that range from 4.5 percent to 25.8.
An economist tells Bloomberg the setup is eyebrow-raising:
“It’s remarkable that Google’s effective rate is that low. This company operates throughout the world mostly in high-tax countries where the average corporate rate is well over 20 percent.”
A Google spokesoman told Bloomberg “Google’s practices are very similar to those at countless other global companies operating across a wide range of industries.”
The Tax Haven That’s Saving Google Billions [Bloomberg]