Apple saves $5 billion in taxes by shifting revenue to Singapore, Ireland

Apple saved more than $5 billion in taxes in 2026 by moving profits through Singapore and Ireland, a Financial Times report said on Tuesday. The tax savings came from a web of subsidiaries that booked most of the iPhone and services earnings in the two low‑rate jurisdictions. Apple did not comment on the details, but the report cites internal documents that show the company shifted roughly $30 billion of revenue into the offshore structure.

The story matters because it arrives as governments worldwide tighten rules on corporate tax avoidance. The OECD’s Base‑Erosion and Profit‑Shifting (BEPS) project has pushed many countries to adopt “global minimum tax” rules that aim to stop firms from parking profit in low‑tax havens. The European Union has already fined Apple €13 billion for an illegal state aid deal with Ireland in 2020. In the United States, the Treasury Department has warned that the new 15 percent global minimum tax, set to take effect in 2024, could affect the company’s future filings. Apple’s 2026 savings show how the tech giant is still able to exploit gaps in the system.

The FT report says Apple’s Irish unit, Apple Operations International, held a “head‑quarter” function that allowed it to claim a 12.5 percent corporate tax rate in Ireland. Meanwhile, a Singapore holding company collected royalties and licensing fees, where the effective tax rate fell below 5 percent after local incentives. Together, the structure reduced Apple’s overall tax bill by about 20 percent for the year. The European Commission’s tax officials said they are reviewing the new data to see if it breaches existing rulings. The US Treasury’s Office of Tax Policy said it will monitor the case closely under the new global minimum tax framework. Apple’s spokesperson called the report “inaccurate” and said the company complies with all applicable laws.

The next steps could involve fresh investigations by the EU and US tax authorities. If regulators find that Apple’s arrangement violates the global minimum tax or existing EU state‑aid decisions, the company could face additional fines or be forced to restructure its offshore network. The case also fuels calls for stronger enforcement of the BEPS rules and for tighter coordination between tax agencies. How Apple adapts may set a benchmark for other multinational tech firms that rely on similar profit‑shifting strategies.