P&G's Luxembourg Finance Arm Boasts $101m Profit with Zero Income Tax

Procter & Gamble Finance Management sàrl, a Luxembourg-based finance company, reported $101.5m in pre-tax profit and zero income tax liability for the year ending June 30, 2025. The company held $2.5bn in receivables from another P&G group entity, generating $115.7m in interest over the course of a year.

The profit did not remain within the company as it paid out $115m as a dividend to its sole shareholder in October 2025 and was wound up on July 8, 2026.

While this case illustrates the transparency offered by country-by-country reporting, it also raises questions about the substance of the activities being carried out. A small number of people can manage billions of dollars' worth of assets, highlighting the need to examine what assets are held, where income comes from, and why it is taxed in a particular way.