AbbVie Has Most Sales in US But Is Taxed at Lower Offshore Rates

AbbVie Inc., maker of the blockbuster rheumatoid arthritis medication Humira, generated 75% of sales in the US in 2020 but just 1% of its taxable income was subject to the highest US corporate rate, according to a report by Senate Finance Committee Chairman Ron Wyden.

The Illinois-based drugmaker reported most of its income through offshore subsidiaries typically taxed at 10.5% under a 2017 tax law that was backed by former President Donald Trump, Wyden’s report said Thursday. That law lowered the US corporate tax rate to 21% from 35%.

Wyden, an Oregon Democrat, is investigating how drugmakers ...