Amazon US
subsidiaries
2
Amazon
EU Sarl
(AEU)
1
Amazon
Europe Holding
Technologies
(AEHT)
3
4
1
AEHT holds the rights to use Amazon’s intellectual property (IP) outside of the US.
2
It licences the IP to one of its subsidiaries in Luxembourg , Amazon EU Sarl (AEU), which operates Amazon’s businesses in Europe.
3
In return for using the IP, AEU pays AEHT hundreds of millions of euros each year in tax deductible royalty fees. This reduces AEU's profits and tax bill. AEHT make large profits but pays no tax on them as such partnerships are not regarded as a taxable in Luxembourg. European authorities suspect these payments are too high
4
In return for controlling the European licensing rights, AEHT makes payments to one of Amazon’s US companies. US authorities believe these payments are too low
At the heart of Amazon’s tax structure is an obscure partnership in Luxembourg, Amazon Europe Holding Technologies SCS (AEHT)
Luxembourg
United States
Amazon US
subsidiaries
2
Amazon
EU Sarl
(AEU)
4
3
1 AEHT holds the rights to use Amazon’s intellectual property (IP) outside of the US.
2 It licences the IP to one of its subsidiaries in Luxembourg , Amazon EU Sarl (AEU), which operates Amazon’s businesses in Europe.
3 In return for using the IP, AEU pays AEHT hundreds of millions of euros each year in tax deductible royalty fees. This reduces AEU's profits and tax bill. AEHT make large profits but pays no tax on them as such partnerships are not regarded as a taxable in Luxembourg. European authorities suspect these payments are too high
4 In return for controlling the European licensing rights, AEHT makes payments to one of Amazon’s US companies. US authorities believe these payments are too low
At the heart of Amazon’s tax structure is an obscure partnership in Luxembourg, Amazon Europe Holding Technologies SCS (AEHT)
Luxembourg
1
Amazon
Europe Holding
Technologies
(AEHT)
United States