Amazon.com Inc’s main UK subsidiary, Amazon UK Services Ltd., paid just 6.3 million pounds (approximately $8 million) in corporation tax in 2019 despite the group reporting over $17.5 billion in sales in Britain, accounts published on Wednesday i.e. 16th September show.
Amazon said the low figure reflected the underlying condition of its UK business.
The company said in a statement, “Corporation tax is based on profits, not revenues, and our profits have remained low given retail is a highly-competitive, low margin business and we continue to invest heavily.”
Last year accounts for Amazon UK Services Ltd, which employs over 25,000 people, show the company also saved 17 million pounds in tax due to the UK’s treatment of share awards to staff, which is more generous than the treatment offered by some other countries.