A new report from CICTAR reveals that Palantir Technologies has paid no US federal corporate income tax for three consecutive years despite generating billions in global government contract revenue.

Key Points

• Palantir’s global effective tax rate was just 1.4 percent in 2025, according to the Centre for International Corporate Tax Accountability and Research.
• The company utilized $3.5 billion in deferred tax assets and R&D credits to offset potential federal tax liabilities on its recent profits.
• While generating 26 percent of its revenue outside the US, Palantir booked 96 percent of its profits domestically to leverage these tax benefits.
• The firm holds over $900 million in UK government contracts but recorded a corporate tax charge of only about $2.7 million there in 2024.
• Palantir maintains that its transfer pricing practices are standard, legal, and compliant with OECD guidelines and local tax laws.

Why it Matters

The report highlights a growing tension between multinational tech firms that rely on public sector contracts and their minimal contributions to the national tax bases funding those services. This discrepancy raises ethical and policy questions for governments regarding whether companies should be required to demonstrate greater tax transparency to qualify for lucrative public procurement deals.