Amazon has announced on its blog that it is increasing its staffing levels at its tax efficient Luxembourg EU headquarters. Luxembourg is a well known tax haven for companies seeking to reduce their tax burdens from operations in the UK and EU.
In its blog the online giant said that it has invested more than €100 billion to grow its business across the EU and UK in the last decade.
Now with more than 4,000 employees in Luxembourg, Amazon is one of the largest employers in the country that has a population of just 630,000 people. Since 2021, Amazon has increased its workforce by more than 10% in the tax efficient country.
“I am incredibly proud of how we have been able to make good jobs available to so many people across Europe, including those in our headquarters in Luxembourg, my home since 2011. We have come a long way here and I am excited we are now one of its biggest employers in Luxembourg” said Amazon’s Vice President for EU Retail, Jorrit Van der Meulen.
Luxembourg has been repeatedly shown to arrange favourable tax deals with major companies. In the so-called Luxembourg Leaks of 2014, the Consortium of Investigative Journalists showed that major logistics players including Amazon and rivals FedEx pay as little as 1% in tax thanks to individual arrangements between the Luxembourg government and multinationals. In 2021 the New York Times reported it had paid zero tax to the grand duchy. As such, this announcement suggests that Amazon’s investment in its Luxembourg operations have great financial reward for the global online retail, logistics and cloud computing giant.
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