Amazon paid only $162 million in US federal taxes in 2019 after making $13 billion in profit – an effective rate of just one per cent

‘Amazon only paid $162 million in federal taxes to the US government after reporting more than $13 billion in profits for 2019, according to the company’s filings with the Securities and Exchange Commission.

That was essentially a tax rate of about 1.2 per cent, after the company was allowed to defer $914 million in federal income taxes.

Thanks to those same deferments, the news was even better for Amazon in 2018, when it actually had a $0 federal tax bill, according to the SEC filing.

Companies are allowed to defer taxes to reduce their taxable income by ‘postponing’ payment, based on accounting practices, while helping firms hold on to more of their profits.

Companies are allowed to defer taxes to reduce their taxable income by ‘postponing’ payment, based on accounting practices, while helping firms hold on to more of their profits. ‘

Read more: Amazon paid only $162 million in US federal taxes in 2019 after making $13 billion in profit – an effective rate of just one per cent