How does a company make nearly $120 million in profit with only eight employees?
That’s the question raising eyebrows across Europe.
New filings revealed Chinese e-commerce giant Temu more than doubled its EU profits in 2024 — all while paying just $18 million in corporation tax.
Temu’s Ireland-based parent, Whaleco Technology, reported revenues of $1.7 billion, a 171% jump from the previous year.
Bargain-hunters flooded its platform for ultra-cheap goods.
But campaigners say its tiny staff count and minimal tax bill show how global e-commerce players are gaming the system.
Scrutiny Over Tax Practices
“Temu’s structure leaves little or no tax benefit in Europe,” said Paul Monaghan, head of the Fair Tax Foundation, calling it part of a “chain of companies in tax havens.”
He urged governments to “protect their tax base” and enforce a fairer playing field for local retailers.
Temu, for its part, insists it’s paying its dues.
“We categorically reject any suggestion that our structure is designed to avoid taxes,” a spokesperson said.
The spokesperson added that it has already paid “billions” across European jurisdictions.
Still, with 115 million EU customers and growing scrutiny over tax loopholes, Temu’s meteoric rise poses a bigger question.
When does a cheap deal come at too high a cost?
