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I was just reading up on this. Here is a good article on this: https://blog.pragmaticengineer.com/section-174/ https://blog.pragmaticengineer.com/section-174/
by antimora 3y ago
I was just reading up on this. Here is a good article on this: https://blog.pragmaticengineer.com/section-174/ https://blog.pragmaticengineer.com/section-174/
- jotux 3y agoInteresting summary from that article: >Here is how the S174 change impacted some companies, based on what I found in their annual reports: >Microsoft: $4.8B additional tax paid in 2023. The company generated a $72B profit that year, so this tax increase was manageable. It’s still a very large amount! >Netflix: around $368M in additional tax paid – also manageable with $4.4B annual profit. >Google: the tax change was minimal, because Google was voluntarily amortizing software development expenses for most staff, already. This was for all projects that reached “technological feasibility,” which is a milestone products pass before public release.