Data analytics firm Palantir Technologies paid £2.1m in UK corporation tax on declared profits exceeding £25m during 2024, resulting in an effective tax rate of just over 8% compared to the statutory rate of 25% that year. The company’s global effective tax rate stands at 1.4%, with the US subsidiary owing no federal taxes and approximately $2.5m in state taxes, according to a report by the Centre for International Corporate Tax Accountability and Research commissioned by trade union Unison.
The UK represents Palantir’s largest market outside the United States, generating £247m in revenues with approximately 750 employees based in Britain. As of 2026, the company holds an estimated £670m in government contracts, including a £240m three-year agreement with the Ministry of Defence awarded without competitive tender in December of the prior year. The firm’s significant public sector presence spans work with the NHS and Ministry of Defence.
Researchers identified transfer pricing as a primary mechanism reducing Palantir’s tax obligations. The company accounts for UK revenues through its US parent entity rather than UK subsidiaries, allowing it to exploit tax advantages in the United States. Company filings reveal a substantial discrepancy: £159m of revenues were disclosed through UK company filings while £247m of UK revenues appeared in stock market filings. Globally, 26% of Palantir’s revenue originates from non-US customers, yet only 4% of revenue is recorded abroad.
Palantir utilizes employee share options as an additional tax reduction strategy. The company deducts the value of vested shares from its tax liability while employees bear income tax obligations on the grants, shifting the overall tax burden. The firm has accumulated billions in accumulated tax credits from share options and carried-forward losses in the US, potentially deferring federal income tax payments for nearly a decade at current profit levels.
Palantir stated it complies with applicable tax regulations across all jurisdictions and characterized transfer pricing criticism as not credible, noting the practice is standard among large multinational corporations. The company reported paying £148m in UK employment taxes including employer national insurance contributions and income tax withholdings on behalf of employees.
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