Why $370bn tech group Palantir pays just 1.4 percent tax: Report

What the report says

Al Jazeera reported that Palantir Technologies, the US data analytics and artificial intelligence company, is drawing renewed attention after a new study by the Centre for International Corporate Tax Accountability and Research (CICTAR) said the firm has structured its business in a way that leaves it paying very little US federal corporate income tax. The report came as Palantir posted sharply higher quarterly revenue, much of it tied to government contracts, and continued to face criticism over work connected to the Israeli military and US immigration enforcement.

According to the publisher’s account of the report, CICTAR estimated Palantir’s global effective tax rate at 1.4 percent in 2025. The group said the company shifted profits from operations in the UK and Europe back to its US parent, limiting taxable income in countries where the work was done. Al Jazeera said Palantir recorded no US federal corporate income tax in 2025 and only modest state taxes, while its UK tax charge remained relatively small compared with the contracts it has won there.

Palantir told the Guardian, as quoted by Al Jazeera, that it complies with tax rules and uses standard transfer-pricing practices common among large multinationals. The report did not allege illegal conduct, but it raised questions about whether a company benefiting from large public-sector contracts should pay more in taxes.

Al Jazeera also placed the tax issue in the wider context of Palantir’s work with US security agencies and its strategic ties to Israel, noting long-running criticism over surveillance, privacy and the use of its software in military settings.