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That's not correct. Apple do not pay income tax here in Norway even though they obviously sell a lot through the Apple Store. They "pay" tax in Ireland, which I

That's not correct. Apple do not pay income tax here in Norway even though they obviously sell a lot through the Apple Store. They "pay" tax in Ireland, which I assume is next to nothing. The argument is not about paying duplicate income taxes. It is about Apple and others using loopholes to get income in countries with low/zero tax rate instead of the country they sell in or actually operate in.

rahimnathwani 11y ago
"Apple do not pay income tax here in Norway even though they obviously sell a lot through the Apple Store." Corporation taxes are levied on income, i.e. profit. Yes, Apple sells a lot through the Apple Store in Norway, but do those stores make any profit? The retail margins on Apple products are tiny. Try negotiating a discount on an iPhone from an Apple reseller. Would the Apple Store (which probably has a much higher cost base than a normal Apple reseller) make any profit? If not, why should they pay corporation tax?
- Oletros 11y ago
  > Would the Apple Store (which probably has a much higher cost base than a normal Apple reseller) make any profit? If not, why should they pay corporation tax? You're joking, isn't?
- sleepyhead 11y ago
  > Yes, Apple sells a lot through the Apple Store in Norway, but do those stores make any profit? My mistake: I meant the App Store not a physical Apple Store. We are not worthy of that yet here.
  - rahimnathwani 11y ago
    Is the App Store based in Norway? If not, why would it be subject to corporation taxes in Norway? Just because it has customers in Norway? Would you expect a SaaS provider in Norway to pay corporation taxes in the US just because it has customers there?
    - sleepyhead 11y ago
      This is exactly what the discussion regarding digital sales is about. Apple has set up their store in Ireland even though it is an American company. They have people employed in Norway and sell to Norwegian customers but pay no taxes as sales are made through Ireland. I expect that a company pay taxes where they realistically operate. I don't think it's fair to set up shell companies in countries where they have no real operations. A company uses a lot of state resources that are paid through taxes. Without contributing they are cheating the rest of the people in a country.
      - rahimnathwani 11y ago
        "I expect that a company pay taxes where they realistically operate." Would you expect a SaaS provider in Norway to pay corporation taxes (i.e. a tax on company profits) in the US just because it has customers there? What about state and federal sales taxes? Would your answer change if the company were to have a single marketing employee based in the US? What if none of the company's customers are in Norway, but all are in the US? Should the company pay profits taxes in Norway, the US, both, or neither?
Strom 11y ago
To say it is a loophole makes it sound like only a few use it or that it's some obscure detail that allows for this. As far as I know, this applies to every foreign company and is very clear from tax law.
- sleepyhead 11y ago
  It's quite a deliberate international network of companies purely set up for the purpose of not paying tax. I would say it's a loophole even though it also consists of obviously legal and locally encouraged practices such as setting up a company in Ireland with a low tax rate. But yes it's an issue with lack of international agreements to avoid situations like this with huge corporations not paying tax locally and small businesses in the same area paying high local taxes.

rahimnathwani 11y ago

"Apple do not pay income tax here in Norway even though they obviously sell a lot through the Apple Store." Corporation taxes are levied on income, i.e. profit. Yes, Apple sells a lot through the Apple Store in Norway, but do those stores make any profit? The retail margins on Apple products are tiny. Try negotiating a discount on an iPhone from an Apple reseller. Would the Apple Store (which probably has a much higher cost base than a normal Apple reseller) make any profit? If not, why should they pay corporation tax?

Oletros 11y ago
> Would the Apple Store (which probably has a much higher cost base than a normal Apple reseller) make any profit? If not, why should they pay corporation tax? You're joking, isn't?
sleepyhead 11y ago
> Yes, Apple sells a lot through the Apple Store in Norway, but do those stores make any profit? My mistake: I meant the App Store not a physical Apple Store. We are not worthy of that yet here.
- rahimnathwani 11y ago
  Is the App Store based in Norway? If not, why would it be subject to corporation taxes in Norway? Just because it has customers in Norway? Would you expect a SaaS provider in Norway to pay corporation taxes in the US just because it has customers there?
  - sleepyhead 11y ago
    This is exactly what the discussion regarding digital sales is about. Apple has set up their store in Ireland even though it is an American company. They have people employed in Norway and sell to Norwegian customers but pay no taxes as sales are made through Ireland. I expect that a company pay taxes where they realistically operate. I don't think it's fair to set up shell companies in countries where they have no real operations. A company uses a lot of state resources that are paid through taxes. Without contributing they are cheating the rest of the people in a country.
    - rahimnathwani 11y ago
      "I expect that a company pay taxes where they realistically operate." Would you expect a SaaS provider in Norway to pay corporation taxes (i.e. a tax on company profits) in the US just because it has customers there? What about state and federal sales taxes? Would your answer change if the company were to have a single marketing employee based in the US? What if none of the company's customers are in Norway, but all are in the US? Should the company pay profits taxes in Norway, the US, both, or neither?

Strom 11y ago

To say it is a loophole makes it sound like only a few use it or that it's some obscure detail that allows for this. As far as I know, this applies to every foreign company and is very clear from tax law.

sleepyhead 11y ago
It's quite a deliberate international network of companies purely set up for the purpose of not paying tax. I would say it's a loophole even though it also consists of obviously legal and locally encouraged practices such as setting up a company in Ireland with a low tax rate. But yes it's an issue with lack of international agreements to avoid situations like this with huge corporations not paying tax locally and small businesses in the same area paying high local taxes.