Apple's tax testimony ahead of Senate hearing: By the numbers

Apple's tax testimony ahead of Senate hearing: By the numbers

Summary: Ahead of a Senate hearing on Tuesday, the Cupertino, Calif.-based technology giant lays out its testimony. Here's what Apple is trumpeting, by the numbers.

TOPICS: Apple, Government US

Apple on Monday posted its full testimony to Congress ahead of a U.S. Senate hearing, in which the company's chief executive will speak to lawmakers.

The U.S. Senate Permanent Subcommittee on Investigation is looking into a number of tax avoidance schemes and strategies by major technology firms.

While Apple took the opportunity to defend its position, taking the high ground over other firms that have abused the tax system at home and abroad, the iPhone and iPad maker stressed one key point: It pays U.S. tax, and if Congress doesn't believe it is paying enough, then lawmakers should change the tax rules.

Included in the testimony are a bevy of numbers that shed light on the company's activities not only in the U.S., but also abroad. Apple says that more than half — nearly two-thirds — of all its revenue comes from international sales. 

Here are the numbers we extracted from the testimony:

  • Apple estimates it has "created or supported" 600,000 jobs in the U.S.; including 50,000 corporate positions, and 550,000 jobs for manufacturers and software development

  • Approximately 290,000 U.S. jobs relate to the "App Economy," thanks to Apple's App Store

  • 850,000 applications in Apple's App Store

  • Around 800 apps from the App Store downloaded per second

  • 61 percent of all Apple's revenue was earned outside the U.S.

  • Around $6 billion paid in taxes to the U.S. Treasury in the 2012 fiscal year — around $16 million per day — which according to Apple accounts for $1 in every $40 in corporate tax the U.S. collected in 2012

  • Apple expects its income tax bill to increase to more than $7 billion in the 2013 fiscal year

  • Apple paid or collected and remitted more than $1.3 billion of U.S. state sales and use taxes

  • Out of its estimated $145 billion overseas cash pile, Apple would see a 35 percent reduction after paying tax on its repatriation

  • More than $9 billion paid out to third-party developers in connection with app sales

Topics: Apple, Government US

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  • As much as I would like some of that Apple dosh ......

    I cannot say I blame them.
  • Percentages

    Obviously apple don't understand the concept of percentages. There's no cap on a percentage.

    Yes, apple make a shed load of money and that's all good for the economy, but why should they have a competetive advantage over others by having their contributions capped?

    They take advantage of the miriad of tax loopholes to move profits off shore and avoid larger taxes in the US (as well as other countries.), just as any other global enterprise does.

    The difference is Apple are trying desperately to fight off Samsung, MS and Nokia and find they can't actually use any of that off-shored money constructively and they want to avoid the corporate tax they should have originally paid, when bringing it back into the country to fight the good fight. In fact it may have been cheaper to pay the proper taxes in the first place.

    Sucked in.
    • move profit off shore

      It seems that this is not what Apple is doing. They are moving sales out of the US. Perhaps because the US customer just can't buy enough of what Apple produces, as then, we who chose to not live in the US, or are subject to US tax are humans too.

      The funny thing is, that Apple earning about 2/3 of their money outside of the US in fact insists of staying an US-only company. They could do just what their competitors do -- move their research and other arms out of the US. But no, they are stubborn to be US company... stupid Apple!

      At the end, probably Apple should do with their pile of cash what was already suggested: just buy a small nation and set their own tax rules.
    • What is "proper"?

      If they earned it in another country (61% of their revenue earned outside the US), why should they pay taxes on it here? They paid taxes on the R&D to develop the product here, so that is all they are liable for here.

      If they sold a phone through an Apple store in France, they paid wages, income taxes, corporate taxes, etc. to the French Gov't. Why should they have to pay US taxes on what is left over?

      Do you think that when Ford UK sells a car in England that they pay taxes on that revenue here in the US? Of course they don't, because the revenue stays with Ford UK. ALL multinational companies do this to some extent.

      That's like "double jeopardy" for corporate taxation.
  • opening the floodgates

    I think that this will be the first of many tech companies to be investigated, and probably companies like Sony's North America sub-company and Samsung's US branch will be under the microscope. With so many sales coming from other markets and companies with branches in various regions around the world there is a lot of wiggle room for tax evasion.
  • There is nothing to investigate, since what Apple is doing is legal.

    There may be hearings in Washington about the practices of Apple and other major corporations, and about where they earn their fortunes, but it won't be about real tax avoidance, since what those major corporations are doing is completely legal.

    The best that Washington can come up with, is changes to the tax laws, but those laws won't be retroactive. But, Washington still won't be able to touch the earnings from those multi-national corporations, and the only part that can be changed, is the part where those corporations report sales and earnings in the U.S. Otherwise, most of what Washington is doing is for show, not much more.