Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Amazon tax bill drops despite profits doubling

Amazon has paid £2.8m less in UK corporation tax in 2017 compared with the previous year, despite almost doubling its profits.

Amazon UK Services, which runs the fulfilment centres to process, package and post deliveries, incurred £4.6m in corporation tax in 2017, while the year before it paid £7.4m.

But the etailer paid only £1.7m in tax last year, after deferring £2.9m by handing out shares to its UK employees.

The company made almost £80m in operating profit, up from £48m in 2016.

An Amazon UK spokesman said it paid all the tax it was required to “in the UK and every country where we operate”.

It said: “Corporation tax is based on profits, not revenues, and our profits have remained low given retail is a highly competitive, low-margin business and our continued heavy investment.”

Last week, the etailer announced net profits for the three months to 30 June of $2.5bn (£1.9bn) – a 12-fold increase on the same period in 2017, marking the first time the etailer’s quarterly profits broke the $2bn mark.

Tags

Readers' comments (1)

  • “We paid all the tax we were required to”.
    Does this make us stupid for paying our fair share of taxes which works out at more than Amazon.

    Unsuitable or offensive? Report this comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.