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Why humans have AMT, but corporations don't?
by AlexTWithBeard 7y ago
Why humans have AMT, but corporations don't?
- gok 7y agoWhat? Corporations absolutely have an AMT.
- AlexTWithBeard 7y agoHmm... Looks like you're right. How do they manage to pay zero taxes then? I thought AMT assumes that once you're beyond a certain level of income, your lose most deductions and essentially pay a certain percent of the income.
- knz42 7y agoThe tax code taxes wins, not revenue. An org that invests all their margin into growth doesn't pay (as much) tax. The best way though is to create an offshore subsidiary, and then have the subsidiary invoice the main office for "services" or "IP licensing". The invoice becomes a cost and is deducted from revenue. "Everyone" (all the big players) do things like that. It's 100% legal.
- pkaye 7y agoThrough subsidiary companies and assigning IP rights, they move their income to a low tax country like Ireland. Its kind of like movie studio accounting. Take Ikea for example. It doesn't make much money because all the profits are sent to a charity that owns the Ikea name.