By Noah Manskar / NYP
Videoconferencing giant Zoom exploited a loophole to avoid paying a penny in federal income taxes in 2020 — even though the COVID-19 pandemic drove its profits to staggering heights last year, records show.
Zoom raked in nearly $664 million in US pre-tax profits in its last fiscal year as its platform became a ubiquitous tool for work, school and socializing during the nation’s coronavirus lockdowns, according to its latest annual report.
That’s roughly 40 times the domestic profit of about $16 million that it posted for the prior fiscal year, the Thursday filing shows.
But Zoom admitted that it didn’t pay any federal income tax on those profits even though the nation’s corporate tax rate was 21 percent.
The Silicon Valley firm appears to have achieved that feat largely thanks to its use of stock-based compensation for employees, which helped reduce its worldwide tax bill by more than $302 million for the year ending Jan. 31.