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VAT doesn't have anything to do with profit. A typical setup is some variation of National subsidiary rakes in money, but has to pay main office in Cayman Isla
by wodenokoto 3y ago
VAT doesn't have anything to do with profit. A typical setup is some variation of
National subsidiary rakes in money, but has to pay main office in Cayman Island even more in licensing fees for the brand. So national subsidiary is running in negative, and doesn't pay any taxes. Parent company received all the money in Tax haven.
- true_religion 3y agoWe need brand importation taxes to foster local brands by ensuring when you rent the brand name of a foreign company then it will cost you more.
- gpderetta 3y agothat's irrelevant with this issue though. This is not about Airbnb not paying tax for its own profit, but about Airbnb failing to withhold tax on the gross rent it collects on behalf of landlords, which is required to do legally.