Palantir was later named a founding partner in a State Department program touching AI governance, surveillance and Bitcoin-linked censorship tools, as scrutiny over its tax position and valuation persisted.
Palantir Technologies paid no US federal corporate income tax in 2025 despite recording $1.66 billion in pretax profit, according to a report from CICTAR, which said the company’s global effective tax rate was 1.4 percent and that it paid less than $21.7 million in income taxes worldwide, net of refunds. The report said Palantir has built up more than $3.5 billion in deferred tax assets from earlier losses, research and development credits, and deductions tied to employee share awards, which it estimated could shelter the next $16.5 billion of profits from US federal corporate income tax. New details indicate Palantir was announced on July 24, 2026, as a founding partner in the US State Department’s Freedom Tech Excellence Program, an initiative focused on online surveillance, AI governance, and the integration of Bitcoin and blockchain technologies to help circumvent censorship in authoritarian regimes. Palantir does not hold specific tokens or operate blockchain infrastructure. The company, which serves US agencies including Immigration and Customs Enforcement and maintains contracts with international defense partners including the Israeli military, also remained a flashpoint for valuation debate, with shares around $155 and market capitalization approaching $370 billion at the end of 2025, while trading at more than 150 times forward earnings. Palantir has said it fully complies with tax rules and uses standard transfer pricing.