AbbVie Inc., maker of the blockbuster rheumatoid arthritis medication Humira, generated 75% of sales in the US in 2020 but just 1% of its taxable income was subject to the highest US corporate rate, according to a report by Senate Finance Committee Chairman Ron Wyden.
The Illinois-based drugmaker reported most of its income through offshore subsidiaries typically taxed at 10.5% under a 2017 tax law that was backed by former President Donald Trump, Wyden’s report said Thursday. That law lowered the US corporate tax rate to 21% from 35%.
Wyden, an Oregon Democrat, is investigating how drugmakers …
TL;DR
AbbVie Inc. reported that 75% of its sales in 2020 came from the US, yet only 1% of its taxable income faced the highest US corporate tax rate. This discrepancy is attributed to the company's use of offshore subsidiaries, which are taxed at lower rates.
- AbbVie generated significant revenue from US sales but minimized its tax liability. Most of its income was reported through offshore entities with a lower tax rate of 10.5%. The 2017 tax law reduced the US corporate tax rate, allowing companies like AbbVie to benefit from lower taxes.
- AbbVie Inc., maker of the blockbuster rheumatoid arthritis medication Humira, generated 75% of sales in the US in 2020 but just 1% of its taxable income was subject to the highest US corporate rate, according to a report by Senate Finance Committee Chairman Ron Wyden.
- The Illinois-based drugmaker reported most of its income through offshore subsidiaries typically taxed at 10.5% under a 2017 tax law that was backed by former President Donald Trump, Wyden’s report said Thursday.