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Well, the thing is, some countries don't have these corporations to begin with. You can't tax a corporation that doesn't exist; and thus some countries are happ
by csomar 5y ago
Well, the thing is, some countries don't have these corporations to begin with. You can't tax a corporation that doesn't exist; and thus some countries are happy with the employment and economic activity these corps provide even if they pay no taxes (the employees still pay taxes, so these corps indirectly pay taxes).
That's why these countries offer a 0% tax rate. Because that's the only attraction they can provide.
This is a law that benefit the big rich countries.
- hetspookjee 5y agoNot quite as a lot of African countries get their small startups wiped out by the likes of FAANG and their local economy sees nothing back from it as all the revenue made gets taxed in Ireland and or some other haven. The countries with a 0% tax rate are not that many as far as I am aware and neither is the corporate presence there, if any.
- wolverine876 5y agoWho can say what they are happy with, but perhaps they benefit from not being strong-armed by companies into not taxing them.
- csomar 5y agoQuite the other way. They are being strong-armed by other countries (especially the EU) into taxing companies.
- wolverine876 5y agoYou don't think companies strong-arm governments? I see it happen in the U.S. Imagine what they do in a small, poor country. The mining industry is an example.