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It's a race to the bottom. There are plenty of jurisdictions (i.e. BVI) with 0% companies. Most of these are used as SPVs to own property, shares, etc somewhere
by charlesdm 11y ago
It's a race to the bottom. There are plenty of jurisdictions (i.e. BVI) with 0% companies. Most of these are used as SPVs to own property, shares, etc somewhere.
If you can pay 1% or 0%, and it doesn't really matter where the company is based, which one do you pick?
- bmelton 11y agoThe one with the best combination of real estate rates, corporation friendly body of law, best bargain labor pool on training and pay, best distribution access (for physical goods) or network infrastructure (for digital goods), etc etc. Taxes are a cost of doing business, and yes, businesses will optimize that cost wherever they can, but paying 1% less in taxes isn't a bargain if it increases your costs or lessens competitive ability elsewhere.