FEDEX CORPORATION March 21/2024
Download PDF
FedEx paysallits taxes owed to local, state, and federal governments globally
Fact:FedEx takes pride in paying its full share of taxes while simultaneously being a good public citizen and providing excellent service to its customers.
Fact:Through Fiscal Year 2023 (FY23), FedEx paid over $2 billion in U.S. federal income tax over the last 10 years.
Fact:During FY23, FedEx paid approximately $3 billion in taxes globally (federal, state, and provincial income; property; payroll; excise; sales; use; VAT/GST, etc.). The company also collected over $13 billion in U.S. and non-U.S. federal, state, and local employee-related taxes and social contributions; sales taxes; VAT/GST; and customs duties on behalf of global taxing authorities. These payments and remittances of over $16 billion contributed to tax revenues of governments around the world.
Fact: Over the last five years, FedEx paid over $9 billion in U.S. taxes (federal and state income; excise; property; payroll; sales; and use). Over the same period, the company also collected and remitted nearly $28 billion in federal, state, and local payroll taxes; customs duties; and state and local sales tax.
Fact:Prior to U.S. tax reform enacted in 2017, FedEx had not reported an effective tax rate on its profits of less than 33% in over 30 years.
Fact:The FedEx effective tax rates for the last five fiscal years were 25.9% in FY23, 21.9% in FY22, 21.6% in FY21, 23.0% in FY20, and 17.6% in FY19. The FY19 rate was inordinately low due to the tax impact of a large non-cash mark-to-market adjustment related to our retirement plans; otherwise, our effective tax rate would have approximated the U.S. statutory income tax rate.
Fact:Our tax information is publicly available in our annual Form 10-K and quarterly Forms 10-Q filed with the U.S. Securities and Exchange Commission.
Fact:Congress has passed laws over the past 20-plus years to encourage business investment through the accelerated write-off of certain capital assets. This legislation was enacted primarily because economists widely agree there is a correlation between capital investment and jobs. However, these "write-offs" are only temporary, with higher deductions and lower taxes early in the life of a new capital asset offset by lower deductions, but higher taxes, later in that asset's life.
FedEx followed these laws as it invested billions in assets eligible for these accelerated write-offs and made large tax-deductible contributions to our employee pension plans. These factors have temporarily reduced our federal income tax, which, consistent with the intention of these laws, helped us contribute to GDP growth, job creation, and higher wages.
Fact:FedEx contributes to the communities where we live and work. In the last three years alone, we contributed more than $190 million to charitable organizations including Direct Relief, World Resources Institute, and JA (Junior Achievement) Worldwide, among many others.
Fact:Through its business operations, FedEx creates over $8 billion in economic activity outside of the corporation in the United States each year. Learn morehere.
Contact FedEx Investor Relations atir@fedex.comfor more information.
Except as otherwise noted, all tax amounts are as of our fiscal year ended May 31, 2023.
All fiscal years end May 31, and all amounts are stated in U.S. Dollars.
Multimedia Files:
Attachments
- Original Link
- Permalink
Disclaimer
FedEx Corporation published this content on 21 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 March 2024 20:42:32 UTC.
