Microsoft just showed the world exactly where its money goes. And surprise: a whole lot of it ends up in Ireland.
The company released its first-ever public Country-by-Country Report on June 30, covering fiscal year 2025. The filing, mandated by EU Directive 2021/2101, reveals that Ireland accounted for 38.1% of Microsoft’s global pre-tax profits, a cool $47.08 billion, while employing just 6,654 people, or 2.92% of the company’s total workforce.
The numbers tell a familiar story
Luxembourg offers an even more extreme example. Microsoft booked $283 million in profits there with a workforce of just 34 employees. That works out to roughly $8.3 million in profit per employee, with an effective tax rate of 3.3%.
For context, Microsoft says it paid $6.3 billion in income taxes across the EU during FY2025. The company also noted a one-time tax refund from France covering the prior three years, totaling $374 million.
