4 ms·
You probably have to be very clever to set this up so they can't be Company A (US) Ltd registering very little profit as they have to pay royalties to Company A
by owlbite 5y ago
You probably have to be very clever to set this up so they can't be Company A (US) Ltd registering very little profit as they have to pay royalties to Company A (Tax Haven) limited without also inflicting massive collateral damage to smaller companies that can't afford the tax lawyers or preventing foreign companies from selling anything in the US.
- seoaeu 5y agoYeah, this is the real problem. It is hard for a law to disentangle whether payments to a foreign company are market rate purchases from an independent supplier (that can't be taxed due to free trade treaties), or transfers of profit to an affiliate shell company