Microsoft Ibérica recorded revenues of 690.8 million euros for fiscal year 2021, ended June 30, 2021, 30% more than in the previous fiscal year. However, the subsidiary of the multinational software obtained a net profit of 22.1 million, 60% more than that obtained in 2020, according to the accounts deposited in the Mercantile Registry.
This increase in profits well above that of sales is due in part to the payment of taxes, since in the fiscal year of 2021 it paid 11.45 million as corporate tax compared to the 9.47 million it paid in 2020, that is, that is, an increase of 20%, three times less than the increase it registered in profits.
The Spanish subsidiary of Microsoft already decided in its 2019 fiscal year to invoice from Spain the sale of hardware Y software to its local clients, associated with the sale of program licenses to the firm’s product supply chain (Windows, Office, etc.), billing that was previously carried out through the company in Ireland.
Revenues from provision of services reached 452.8 million, 39% more, of which 266.5 million were generated by software and services in the cloud and 52.5 million for support and consultancy services and 133.7 million for the commissions accrued in the year in accordance with the commission agent contracts signed between the Spanish subsidiary and other group companies (Microsoft Ireland and Microsoft Corporation).
License sales reached 238 million, 16.8% more than in the previous year, although the figures are not comparable because the company has transferred 133.3 million euros of sales to services due to a change in methodology.
He knows in depth all the sides of the coin.
Derived from the inspection process for the company tax of the fiscal consolidation group (Microsoft International Holdings Spain and Microsoft Ibérica) for the tax periods 2012-2014 as well as other taxes of Microsoft Ibérica corresponding to 2013-2015, liquidation certificates were received for amounts of 8.95 million euros and 3.12 million euros (including default interest in both amounts) respectively. The multinational has paid all the amounts, having challenged the first liquidation agreement, in addition to initiating an amicable procedure on it.
On July 24, 2020, a sanction proposal resolution agreement was received, for an amount of 5,026,524 euros derived from the inspection process in relation to Corporation Tax, although in August 2020 the company filed an economic-administrative claim and Subsequently, on March 15, 2021, the pleadings brief was filed, and the payment is currently suspended. The company has not provisioned any amount because it cannot reliably estimate the results of the mutual agreement procedure and because it considers, together with the opinion of its tax advisors, that the risk of loss due to the sanction is not considered likely, both in terms of the challenging the tax settlement agreement, as well as the sanction.