3 ms·
Yes, this is arbitrary. So e.g in Germany there would be an argument about how much of the ad revenue Facebook does in Germany should be reduced by R&D costs th
by alkonaut 1y ago
Yes, this is arbitrary. So e.g in Germany there would be an argument about how much of the ad revenue Facebook does in Germany should be reduced by R&D costs that happened elsewhere.å
- snapplebobapple 1y agowhy wouldn't it be reduced by R&D costs that happened elsewhere? if the German flew to wherever the R&D costs were incurred they would certainly be charged and net profit would be figured out accounting for those costs. if a German distributor bought whatever the product was and imported it to Germany they would be charged for those R&D costs and they would show an arms length transaction proving their profit was less by said R&D costs and if the government charged them tax as if they weren't charged for those R&D costs they would go out of business because they would not be profitable/have to spend so much estimating what portion of what they were charged was R&D (because they don't know and can't know for sure).
- alkonaut 1y ago> why wouldn't it be reduced by R&D costs that happened elsewhere? It would be reduced. The profit can’t be 100% of their German as revenue because obviously they have costs elsewhere. But the argument of some countries is now that it also can’t be 0%.