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Tech company Palantir has contracts with governments across Europe yet pays minimal tax in those countries, new research shows. Trade unions and critics say European taxpayers are helping fund a company that contributes little back to the public purse. The findings also highlight broader concerns over the continent’s reliance on US technology.

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Sebastiaan Brommersma, Salsabil Fayed, Henk Willem Smits

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What’s the news?<br>US technology giant Palantir had an effective global corporation tax rate of 1.4% in 2025, paying only $22.7 million despite reporting $1.6 billion in pre-tax profit.<br>The firm achieves this through strategies that shift profits generated in Europe to the US, where they are taxed at very low rates or not at all, a new study found.<br>Why does it matter?<br>European trade unions are outraged because many EU governments are Palantir clients, from Germany and the Netherlands to the UK. They argue that the company profits from taxpayers’ money while contributing little back through corporation tax.<br>Critics also say that Palantir’s tax arrangements make it harder for European firms to compete, reinforcing the continent’s dependence on US technology.<br>How was this investigated?<br>The Centre for International Corporate Tax Accountability and Research (CICTAR) analysed Palantir’s public financial records on behalf of European trade unions to map the company’s tax structure.<br>CICTAR produced a report together with the European Federation of Public Service Unions, and it was shared with Follow the Money ahead of publication.<br>FTM analysed the findings and interviewed experts on the issue.

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Less than two cents on every dollar.<br>That was US tech giant Palantir’s effective global corporation tax rate in 2025, according to a new study.<br>Palantir reported $1.66 billion in pre-tax profit last year but paid just $22.7 million in corporation tax, found the Centre for International Corporate Tax Accountability and Research (CICTAR).<br>Its effective tax rate therefore amounted to a mere 1.4%.

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That is far below the 15% global minimum corporation tax rate agreed by more than 145 countries under the Organisation for Economic Co-operation and Development (OECD)’s framework. The United States, however, has negotiated an exemption from the agreement.<br>Founded in 2003 – in the aftermath of 9/11 – by tech billionaire and Trump ally Peter Thiel, Palantir has become a major supplier of data analytics software to governments worldwide. Its tech is used in defence, intelligence, policing, and even healthcare.<br>Yet the company is facing growing scrutiny over alleged involvement in human rights violations – such as collaborating with the Israeli military and helping the United States to crack down on irregular migration through Immigration and Customs Enforcement (ICE).<br>There are also widespread concerns over the risks its technology could pose to European security.<br>“It is unacceptable that Palantir is evading its social responsibility through opaque arrangements”

The new study – carried out by CICTAR on behalf of the European Federation of Public Service Unions (EPSU) – examined Palantir’s tax structure in light of its contracts with European governments, including those in France, Germany, Spain, the Netherlands, and the UK.<br>Although some of those contracts are currently under review, taxpayers across the continent are still helping fund a company that pays hardly anything in tax itself, according to CICTAR.<br>“A clear pattern of aggressive tax avoidance has emerged in almost every country where it operates,” the report said.

Marieke Manschot, an official at the Dutch trade union FNV – which is part of EPSU – and board member of Public Services International, said the findings raise serious concerns about Palantir’s tax affairs.<br>“It is unacceptable that Palantir is evading its social responsibility through opaque arrangements,” she told FTM. “Palantir pays little or no tax, whilst in the countries where it operates it does make use of public services such as education, healthcare, and infrastructure.”<br>“The bill therefore ends up being footed by the ordinary taxpayer,” Manschot added.<br>Palantir provided a general statement, saying that its public and private sector partnerships across Europe “reinforce a common commitment to the values that strengthen European society”.<br>“Customers use our software to enhance their capacity to operate effectively,...