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Lots of companies have employees and stakeholders in diferent countries that do not pay any taxes, yet profit from operating here. That's one reason. Another r
by didibus 7y ago
Lots of companies have employees and stakeholders in diferent countries that do not pay any taxes, yet profit from operating here. That's one reason.
Another reason is distribution. You might want employees to pay no taxes at all on their salaries. And you might want shareholders to pay no money at all on their capital gains or dividends, and yet you'd want company revenue to be taxed. The big difference is in theory, a company can just rotate money within itself forever, take revenue and use it for expansion, or investment, or whatever. So all that money only gets taxed once a shareholder sells, or an employee gets paid, but a large portion gets re-invested in the company itself, which you'd want taxed as well, in order to get a steady flow of cash and also capture its real value.