Google doubles its tax to €17m

New accounts filed by Google show that the amount of tax the search engine giant paid in Ireland more than doubled from €8.1m to €17m last year.

Google Ireland Ltd’s turnover in Ireland grew by €3bn to €15.5bn but the company’s tax is calculated on Google’s profit of just under €154m.

A note on the company accounts said that tax paid at the standard rate of 12.5% was €19m and that the total current tax paid by Google, including foreign withholding tax, was €33m giving the company a profit after tax of €120m.

Vice-president International SMB sales and head of Google in Ireland John Herlihy described the last year in Ireland as a period of growth.

“2012 was a period of sustained growth in our Europe, Middle East and Asia operations. Our growth reflects the strength of the European digital economy which the EU Commission estimates is growing seven times faster than the traditional economy.

“Increasing amounts of business are being transacted online and our success in delivering relevant, cost effective, online advertising for our customers is reflected in the increase in revenue and turnover achieved in the 2012,” he said.

Employment has grown steadily in Ireland — by 5% in 2012 — to reach 2,199, making the company one of the largest multinational employers in Ireland as it celebrates its 10th anniversary here.

Google has continued to invest in Ireland. The company opened a new €75m data centre in Clondalkin, Dublin, in August and launched its Digital Innovation Centre (The Foundry) on its Europe, Middle East and Asia campus in September.

“This year we proudly celebrate 10 years in Ireland. During that time we have put down deep roots in Ireland, which is reflected not only in the size of our operations here, but also in our support for Ireland’s business and academic community.

“This summer we announced a three-year partnership with Trinity College to train 1,000 teachers in 21st Century Computer Science Teaching Skills and we also renewed our partnership with the Science Gallery.

“With the establishment of The Foundry we will have the opportunity to expand our partnerships with Enterprise Ireland and other organisations to support Irish companies and start-ups in capturing the opportunities presented by Digital,” said Mr Herlihy.