How Much Do Large Corporations Pay In Income Tax ? Probably Less Than You Think

To take an extreme example Facebook is indicated as having an overall tax rate of 40.5%. I can actually tell you how they got that number. According to its 2015 10-K (Page 57) Facebook had "Income before provision for income taxes" of $6.194 billion and a "Provision for income taxes" of $2.506 billion which, rounded, works out to 40.5%. Facebook did not however pay $2.506 billion in income taxes. You have to dig a little for that number. It is on Page 61 as part of the "Supplemental cash flow da...