Twitter Spain pays less in taxes than on one worker¡¯s salary

Twitter Spain,?the Spanish affiliate of the popular American micro-blogging website Twitter, recorded a net profit of just €221,038 in 2018, 13.9% up on the previous year, after revenues of more than €4.5 million (0.4% more than 2017), according to the annual accounts filed by the company with? Spain¡¯s company registry.

Twitter Spain transfers most of its profits to Ireland, where corporate tax rates are lower than in Spain

The Spanish affiliate of Twitter actually enjoyed a much higher turnover, but in the above figures the company only includes the income made from the marketing, advertising and business-development services it provides to the Irish branch of the Twitter International Company, which has the largest share of the US company¡¯s business in Europe. This allows the Spanish division to transfer most of its profits to Ireland, where corporate tax rates are lower than in Spain.

Like other multinational companies ¨C such as Google, Microsoft, Facebook and Apple ¨C Twitter takes advantage of Ireland¡¯s corporate tax rate (12%) to lower its fiscal burden. As a result, Twitter Spain only owed Spain¡¯s Tax Agency a total of €113,131 in corporate tax. In other words, the Spanish affiliate paid less to the Tax Agency than it spends on one its 19 workers, who earn an average of €131,578 before taxes, including social security contributions and other employee costs.

Twitter Spain¡¯s operating expenses rose to €4.177 million, up from €4.167 million the previous year, with most of this amount going to personnel costs (€2.5 million).

English version by Melissa Kitson.