Netflix’s tiny Australian tax bill makes $1.5 million profit for the first time

Netflix has earned hundreds of millions of dollars from Australian customers in 2021. But his tax expenses were tiny compared to his income.

Netflix paid less than a million dollars in taxes in 2021 despite earning hundreds of millions of dollars from Australian customers.

According to the Australian Securities and Investments Commission (ASIC) documents, as shown Sydney Morning Herald, Netflix’s local tax bill was $868,000. The company reported a profit of $1.5 million from $30.7 million in revenue related to internal operations such as payment processing.

The real part of Netflix’s income – income from customer subscriptions – was not subject to Australian taxes, since local subscribers were billed through a company based in the Netherlands.

The Netherlands is a low tax jurisdiction and Netflix’s accounting activities are legal. SMX stated that Netflix intended to bill Australian customers via Australia from January 2022.

Although Netflix does not disclose the number of subscribers in specific regions outside of North America, industry analyst Telsyte has estimated that Netflix has six million subscribers in Australia.

With the cheapest subscription in Australia at $10.99/month and a top cost of $22.99/month, six million accounts will generate between $791 billion and $1.65 billion in revenue.

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Netflix has increased its local commissions since its first Australian title, a widely panned supernatural drama. tidal landsstarring Elsa Pataky in May 2017.

Since then, the streamer has released a controversial reality show. Byron Baeswhich angered locals over fears of how the popular resort town would be portrayed, by Chris Lilly Sleepwalkersanimated film Back to the outback and documentary Puff: Wonders of the reef.

Has in work Broken heart reboot, dramedy starring Celeste Barber wellmania biopic about Jessica Watson true spirit.

Australia has also hosted many Netflix films that were co-produced with the US.

There was a thriller clickbaitfilmed in Melbourne but with an American story and American lead actors.

Upcoming action film directed by Elsa Pataky Interceptordirected by Australian writer Matthew Reilly, who adapted his book, although it was understood. Interceptor was ordered from Team USA.

TV series Melissa McCarthy God’s Favorite Idiot filmed the first episodes in northern New South Wales before production abruptly ended early. The remaining episodes are expected to film later in the US.

Netflix and other international streamers, including Amazon Prime Video and Disney+, are heavily investing in Australian production while trying to prevent government intervention in the market.

Local producers and artists are pushing for a mandatory quota, requiring international entertainment companies to invest a certain percentage of their revenues in producing Australian TV shows and films.

Globally, Netflix has had a tumultuous few months in which its share price has fallen 70% since the start of the year, wiping out tens of billions of dollars in value.

The company said in April that it had reported a net loss of 200,000 subscribers in the first three months of the year and expects to lose another 2.5 million in the current quarter. The news caused its stock to sell off as investors worried about the business’s long-term growth trajectory.

As a result, Netflix executives have pledged to make sweeping changes to their operating model.

Netflix said it would introduce a cheaper ad-supported membership tier by the end of the year and ban password sharing.

He also began to cut costs, including laying off the head of animation, as well as several employees and projects, including the Meghan Markle series. Pearl.

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