Oracle arm pays €15m in Irish tax on €8bn sales

The main Irish subsidiary of US software and hardware giant Oracle last year paid corporation tax of €39m on international revenues of €8.14bn.

Of the overall tax bill, the subsidiary paid €15m to the Irish Revenue.

New figures lodged by Oracle EMEA Ltd to the Companies Office show that the firm recorded a pre-tax profit of €109m, down 14% on the €127.45m recorded in 2014.

Revenues at the firm in the 12 months to the end of May rose 4% to €8.14bn.

The firm’s main activities comprise the manufacture and sale of computer hardware and software products in Europe, the Middle East and African markets, as well as translation, finance, and marketing services.

The revenues generated by the Irish arm represent 24% of Oracle’s global revenues of €33.83bn ($38.26bn) in the year to the end of May.

According to the directors’ report, “the trading results of the company have remained strong with a 4% growth in turnover”.

“The company earned a profit in the current year and our expectation is that the company will continue to trade successfully and remain profitable in future periods,” report said.

The report reveals that “in fiscal 2015 Oracle EMEA Ltd invested €35.9m in research and development to enhance existing and develop new technologies”.

The filings show that the firm’s tax liability for the year was €39m compared to a tax bill of €58m in 2014.

The firm’s tax bill was made up of Irish corporation tax of €15m in addition to its foreign tax liability of €45m. Timing differences and adjustments reduced the tax bill to €39m.

The firm’s shareholder funds at the end of May last year stood at €2.24bn, while its cashpile almost doubled to €771m.

The numbers employers increased from 1,163 to 1,282, with 866 people working in sales and marketing; 165 in manufacturing and software development; 191 people in finance and administration; and 60 in product localisation and translation.

Staff costs last year increased from €90m to €101.93m.

The profit takes account of combined non-cash depreciation and amortisation costs of €239.6m.

The figures show it had an operating profit of €95m.


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