Microsoft Releases Country-by-Country Tax Figures Amid Tax Controversy

US tech giant Microsoft paid $6.3 billion in corporate taxes in the European Union for the fiscal year ending June 30, 2025, with $5.6 million accruing to the Irish treasury, according to the company’s first country-by-country breakdown, which was seen by dpa on Tuesday.

“Microsoft pays the taxes we owe in every country where we operate,” the company said in a statement. “We know there are strong views about whether companies are paying enough, and we believe providing this context leads to a more informed conversation.” Microsoft has its European headquarters in Dublin.

The company paid a total of $28.7 billion dollars in corporate taxes globally for the year, putting it in second place behind Apple, which paid $29.7 billion. The companies were also subject to payroll taxes, value-added taxes and property taxes.

Big German operation, but much less tax revenue Germany, with a staff of 3,471, is one of the largest Microsoft operations in Europe, posting turnover for the period of $11.68 billion. Profits are put at just $661.2 million, with corporate tax paid coming in at $174.2 million.

Explaining the discrepancy, Microsoft notes that its German units are focused on sales, marketing, administrative support and research and development, while software rights are based in Ireland.

The taxation of US tech companies in the EU has been a point of conflict for years, with the European Commission saying they pay too little tax on the European mainland.

Google, Apple and Microsoft have their profits taxed where they have their head offices, rather than where those profits are actually made.

EU trying to close tax loopholes Brussels is looking to implementation of the OECD’s global minimum tax and the EU’s Digital Markets Act (DMA) to close tax loopholes.

The figures are being published in line with EU transparency rules and reveal, for the first time, the countries where Microsoft generates turnover, makes profits and pays taxes.

Microsoft says that its tax structure reflects where its employees work, where its investments are made and where its assets, functions and risks are located, noting that Ireland is its most important operative and financial hub for Europe.

In the fiscal year ending on June 30, its Irish subsidiary with a staff of 6,654 posted turnover of $196 billion and profits before tax of $47.1 billion.