Dropbox to bill more than 200m users via Ireland

Income from many clients will be booked in Ireland where corporation tax is much lower

Dropbox website image: the move to handle income in Ireland will bring back into focus the controversial role played by Ireland in the tax affairs of US multinationals

Dropbox website image: the move to handle income in Ireland will bring back into focus the controversial role played by Ireland in the tax affairs of US multinationals

 

Dropbox, the US-based file-hosting service, has told its 300 million-plus users it will bill most of them by way of its international operations centre in Dublin.

The move means income from all customers outside the US, Canada and Mexico – about 70 per cent of the customer base – will be booked in Ireland where the corporation tax, at 12.5 per cent, is significantly lower than most of the jurisdictions from which any income will flow.

The move will bring back into focus the controversial role played by Ireland in the tax affairs of US multinationals.

A source close to the company said Dropbox would not be routing its income offshore via Ireland, as has been the case with companies such as Google, Apple, and Microsoft.

Dropbox announced in 2012 it was opening its international operations centre in Dublin. Dropbox Ireland now has 100 employees.

Last week Dropbox emailed its customers and said those living outside North America would get their service via Dropbox Ireland from June 1st, 2015.

Growing

“We have a growing number of Dropbox users around the world, including more than 120 million in Europe, and have a simple sales model,” he said.

“We provide our services to users in North America from Dropbox Inc, and we’ll provide our services to users outside North America via Dropbox Ireland. Of course, we’ll continue to pay any taxes owed in countries where we’re required to.”