New disclosure rules expose big gap between Analog Devices’ Irish tax charge and sum paid

New European Union transparency rules for large companies have revealed that chipmaker Analog Devices paid an effective tax rate of less than 3 per cent on $2.5 billion (€2.23 billion) of Irish profits last year, well below a previously implied rate of 11 per cent.

The US semiconductor maker’s latest annual report published in March said most of its pretax earnings are booked in Ireland at a tax rate of 12.5 per cent.

In August, the firm’s main Irish subsidiary, Analog Devices International Unlimited Company, reported it made $1.8 billion of pretax profits in the year ended November 1st, 2025.

It recorded a total tax charge of $198 million for the year, with $105 million related to corporation tax, which meant the company’s effective tax rate for the year was 11 per cent.

A new filing by Analog Devices, published by the firm to comply with new EU financial transparency rules for large companies, has consolidated earnings at all seven of its Irish entities and indicated its Irish effective tax rate was a fraction of a previously implied rate.

The filing showed Analog Devices’ seven Irish firms made total revenues of $10.05 billion and combined pretax profits of $2.56 billion in the latest financial year. It said Irish cash-tax payments totalled $69.9 million in the financial period, which equates to an effective tax rate in Ireland of 2.7 per cent.

It showed the company made cash tax payments totalling $562.2 million globally during the year, with $34.9 million paid in Germany and $450.1 million to non-European tax jurisdictions.

Analog Devices’ latest annual report said its effective tax rate rose from 8 per cent to 16.4 per cent in the latest fiscal year.

The company said its effective tax rates for the two most recent fiscal years were lower than the US statutory rate of 21 per cent due to lower statutory tax rates applicable abroad.

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In addition to shedding more light on the company’s cash tax payments, the figures in Analog Devices’ EU transparency filing have shown for the first time that 94 per cent of the company’s pretax profits were booked in Ireland, where 1,765 of its 24,500 global workforce are based.

Analog Devices, valued at more than $188 billion, has offices in Limerick, Dublin and Cork. Its largest operation in Ireland is a 65,775sq m fabrication plant in Limerick.

The Irish Times asked the company if it could explain why the EU filing produces an effective tax rate of 2.7 per cent while the subsidiary’s Irish accounts and the group’s annual report suggest higher rates.

A spokesperson for the company said it “remains committed to complying with applicable tax laws and reporting requirements in the jurisdictions where we operate”.

The company is one of a number of Irish-based multinationals expected to comply with the European Union’s new country-by-country reporting directive, which has mandated firms with global revenues of more than €750 million to disclose specific financial data, including how much tax was paid in EU states and their pretax profits.

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The State’s reliance on a select number of multinationals for tens of billions of euro of corporation tax receipts, which totalled €32.9 billion last year, has been exposed under these financial transparency rules.

Separate filings by tech firms Apple and Microsoft have shown they paid $17.1 billion and $5.6 billion in Irish taxes respectively last year.

Analysis by The Irish Times showed there was a significant drop-off to the next biggest contributors to Irish corporation tax, with consultancy firm Accenture paying $303.4 million, Bank of America Corporation paying $90.6 million and Analog Devices paying $69.9 million.

None of the pharma firms with large operations in the Republic, which are understood to also be significant contributors to corporation tax receipts, have filed their EU financial transparency reports yet.