A complex set-up means the Australian Tax Office (ATO) could demand Apple pay tax on its transtasman operation in Australia because its New Zealand operation was managed from Sydney.
ASNZ paid tax at 30% on its pre-tax profit of $50.20m; that is, Australia’s corporate tax rate rather than NZ’s 28%; indicating payments were made across the ditch.
An ATO spokesperson said it was unable to comment because of its obligations under taxpayer confidentiality laws.
An Apple spokesman said, “Apple pays tax in every country we do business, including New Zealand.”
Apple goods and services sold in New Zealand include GST and applicable customs fees.
Apple’s major New Zealand play – buying wireless charging start-up PowerbyProxi in a $100m-plus deal in 2017 – was outside its sales operation.
PowerbyProxi founder Fady Mishriki stepped away after the acquisition, but key members of his team stayed on and still work on wireless charging for the whole Apple group from Auckland.
Apple’s releases in the current New Zealand financial year have included the iPhone 18 Pro series; its first foldable, the iPhone Duo; and its first touchscreen Mac.
Despite the AI data centre boom-induced “RAMageddon” pushing up prices, early sales signs are promising.
At Spark’s annual shareholder meeting on Friday, chief executive Jolie Holdson said: “We delivered a strong iPhone 18 season with handset volumes increasing 40% compared with the equivalent launch period last year”.
Apple launched its new iPhone 18 series on September 10.
Last week, Apple reported global fourth-quarter revenue rose 12% from a year earlier, to US$114.48b ($205b). Profit also increased nearly 12%, to US$30.71b.
Both numbers topped Wall Street’s expectations and lifted Apple to record revenue and profit in a fiscal year, which ended in September.
Apple paid just over US$19b in tax in the United States for the year to September 30, 2026, accounting for nearly 5% of all US corporate tax collections, according to a Wall Street Journal report on November 3.
It’s also the highest single tax payment disclosed, ahead of Nvidia’s US$16.8b.
In addition to the $19.011b Apple paid in the US (where the corporate tax rate is 21%), the company also paid US$5b in Ireland (12.5%), US$3.3b in Singapore (17%) and US$1.7b to US state and local governments (which have varying rates).
On an accounting basis, Apple’s tax rate was 17%, up from the prior year’s 15.6%, the Journal said.
Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.
