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The corp. tax loss is 10% Its becoming clearer that the world is shifting towards coordinated world-wide tax rates, similar to how central banks are coordinate
by buboard 7y ago
The corp. tax loss is 10%
Its becoming clearer that the world is shifting towards coordinated world-wide tax rates, similar to how central banks are coordinated. Modern trade is complex and almost always multinational. Clear and easy tax rates will actually allow anyone to enjoy fair taxation, instead of the current unequal situation in which megacorps can use complex schemes to drastically reduce their rates, while normal businesses can't.
Incidentally , the most unequal territory in terms of shifted profits is Europe. An EU-wide corporate tax of 20-25% would be good for business
- gamblor956 7y agoTax rates are clear and easy. Corporations were taking advantage of loopholes that increasingly no longer exist.
- deleted 7y ago[deleted]
- buboard 7y agoThey are really not. E.g. i have to use a US business to collect in-game payments because accounting for all the various taxes and VAT is a f’in nightmare.
- gamblor956 7y agoI did not say tax compliance was easy. But figuring out the rates is a simple table lookup. Also, using a US business to collect in-game payments no longer lets you avoid VAT compliance if you sell to EU customers. Which is why you can now use an EU VAT compliance "one-stop shop" which does it all for you.
- Mirioron 7y agoDoes that one stop shop have reasonable VAT minimums yet?
- gamblor956 7y agoThe one-stop shop will work with you whatever your VAT liability is. If you mean do the EU countries have reasonable thresholds, then that's a country-by-country issue. As it should be... In that respect, tax is no different than each platform or website having its own API and TOS. We don't make every Facebook and Google use the same API and TOS, so why should we force countries to use the same tax thresholds?
- Mirioron 7y ago>If you mean do the EU countries have reasonable thresholds, then that's a country-by-country issue. As it should be... When did they make this change? Because initially when the system started the mini-one-stop-shop did not allow you to use VAT thresholds. That was one of the big points of contention about it.
- gamblor956 7y agoWe're talking about 2 very different things. It sounds like you're talking about a one-stop shop where you get to decide when you want to use it based on your own thresholds. You can certainly do that, it depends on the specific one-stop shop as to how much is manual vs done for you. Some are more technologically advanced than others. I'm talking about the VAT thresholds at which you're required to collect VAT (and thus would consider using a VAT one-stop-shop). At the time the one-stop shops were introduced, there were no minimum thresholds. Generally, beginning in 2019, EU members are supposed to have a EU 1000 threshold for requiring VAT compliance. But like all EU rules, this rule requires local implementation and it hasn't yet been implemented by all member states. So in some countries, you need to do at least EURO 1000 of business before needing to deal with VAT compliance...but in others, its still EURO 0.
- Mirioron 7y ago1000 euros sounds so incredibly low that it might as well not exist. I'm actually amazed how poorly that's thought out.
- thecleaner 7y agoIt is weird that in Germany, you hit the highest bracket so quickly. It would be great if individuals were taxed like corps - pay after your expenses like rent etc. In this place there is nothing to save taxes on. Even if rent goes up, tax rate stays the same. Not counting the ridiculous system of Church tax which is just infuriating.
- yahwrong 7y agoWhat's the point in being a big multinational conglomerate if you can't use your size to leverage favorable tax terms over your competition?