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Tax policy, but not just tax policy. Companies also place their operations based on cost (total operating cost, including logistics costs and whatever). For ins
by ptaipale 11y ago
Tax policy, but not just tax policy. Companies also place their operations based on cost (total operating cost, including logistics costs and whatever). For instance, it is not a surprise that so many computers and smartphones are made in China.
- inthewoods 11y agoCompletely agree - but if you look at these global companies, many just locate their headquarters in tax-free zones while not having a substantial amount of employees, or engage in tax avoidance strategies like the Double Irish. But you're right - it's not typically only for tax reasons.
- ptaipale 11y agoAnother reason is that tax havens (such as Cayman Islands, or within EU also Luxembourg or London) often have substantial amounts of financial services - lawyers and other experts are available. So, for the logistics of running headquarter functions, it's not necessarily that taxes are low, it's also that there's available expertise for operation.