Lead

Palantir Technologies, the US data analytics and artificial intelligence company, paid a global effective tax rate of just 1.4% in 2025, according to a report by the Centre for International Corporate Tax Accountability and Research (CICTAR). The report, commissioned by the UK trade union Unison, details how the company paid no US federal corporate income tax in 2024 and just over $2.5m in state taxes, while in the UK it recorded a corporation tax charge of about £2m for the same year.

The findings come as Palantir reports soaring revenues, driven partly by government contracts, including a three-year, £240m deal with the UK's Ministry of Defence awarded last December. The company also holds an estimated £670m in UK government contracts as of 2026, and its CEO Alex Karp has forecast worldwide revenues will almost double to $8bn this year.

Coverage Comparison

Two outlets—Al Jazeera and The Guardian—have reported on the CICTAR study. Al Jazeera focused on Palantir's corporate structure and its contracts with the US military and intelligence apparatus, noting the company has "engineered its corporate structure" to avoid US federal income tax. The Guardian emphasised the UK angle, highlighting the disparity between Palantir's UK revenues and its tax payments, and quoting Unison's general secretary criticising the system that allows such tax avoidance.

Both outlets reported the key figure of a 1.4% global effective tax rate, with Al Jazeera attributing it to "tax breaks, accounting practices, and government contracts" and The Guardian pointing to similar factors. The Guardian also noted that Palantir's shares rose 17% in early trading after the revenue forecast, a detail not present in Al Jazeera's coverage.

Key Claims

  • Palantir's global effective tax rate was 1.4% in 2025, as reported by both Al Jazeera and The Guardian.
  • The company paid no US federal corporate income tax in 2024 (The Guardian) and in 2025 (Al Jazeera), and just over $2.5m in state taxes in 2024.
  • In the UK, Palantir paid £2m in corporation tax for 2024, despite declaring £247m in revenues.
  • Palantir holds an estimated £670m in UK government contracts, including a £240m MoD deal, as reported by both outlets.
  • CICTAR claims Palantir shifts profits from the UK and Europe to its US parent company, where losses and tax breaks reduce its tax bill. This profit shifting is described by Al Jazeera as a "pattern" and by The Guardian as a result of "accounting practices."
  • Palantir benefits from US tax changes, including the reduction of the federal corporate rate from 35% to 21%, as reported by Al Jazeera.
  • Al Jazeera also reported on criticism of Palantir from groups like Amnesty International, which has called on the UK government to reconsider Palantir's contracts, and noted Palantir's strategic partnership with Israel and its use of technology for immigration enforcement in the US.

Perspectives

Unison (via Andrea Egan, General Secretary): The trade union, which commissioned the report, argues that systems allowing tax avoidance on an industrial scale must change, and that companies like Palantir should pay their fair share. Egan stated: "Tech giants raking off billions in profit shouldn't be free to pay what they please. Ministers shouldn't award contracts to run public services to firms that are starving them of cash."

CICTAR (Centre for International Corporate Tax Accountability and Research): The research organisation authored the report, alleging that Palantir has engineered its corporate structure to avoid taxes, shifting profits to the US where earlier losses and tax breaks result in minimal tax payments.

Palantir Technologies: The company has not commented in the provided reports, but its CEO Alex Karp described the revenue growth as "otherworldly" in a statement reported by The Guardian.