| Sunday, December 7, 2008 - 08:52 am |
Is there any benefits to have taxes to zero on the state corps?Is it neccessarily to have high taxes on the state corps if I was to make them a Truly corps?Or what's the difference?Please correct me.Thanks.I have zero taxes in my country and zero profit transfer for now.But no truly corps yet as I have to make them grow first with fully upgrades and quality at 296 with high sales and low buying strategy.Thanks again.
| Monday, December 8, 2008 - 04:05 am |
I still need answers about taxes.Please,thanks again.Because what I know about zero taxes is that ceo can make huge profits,doe's that require the same to the states?
| Monday, December 8, 2008 - 05:37 am |
Because state and national corps are subject to profit transfer it is the only true way to have your corps share their wealth with the country they are owned by. You can only put cash into a corp via the profit/debt screen of corporations. As far as benefit goes, not moving money out of the corps would raise it's value, but you wouldn't make any money from it until sold to a ceo possibly or having the corp go public.
| Monday, December 8, 2008 - 07:12 am |
I am pretty sure taxes raise the P/E ratio, which can be a problem if you plan to IPO. I believe this is the case because I'm playing with a new country on WG where I have a 40% tax rate and my P/E ratios suck even though the corp is otherwise profitable.
This is pretty much the only effect that tax has on state corps. The cash in your state corps is 100% yours anyway, so as far as earning money goes it doesn't matter if they're paying taxes or not. Taxes are mainly a way of taking a cut of revenue from private and public corps.
Next, a correction: you can in fact take cash out of a state corporation. If cash level is over 75B it blocks you from entering anything into that corp's text box... but if you go down to the bottom you can use the "Reduce cash in all corporations to..." box to transfer cash out.
| Monday, December 8, 2008 - 07:51 am |
Thanks.I found that haveing zero taxes brings down the P/E ratio and bring the value high and I think that's how it works.Also zero profit transfer also helps too.With my little experience in last few months.Give that a go or do some testing.
| Monday, December 8, 2008 - 10:20 pm |
Oops, I'm wrong: You *can't* take cash out of state corps! You can only enter positive numbers =/ I swear I used to be able to. Or maybe I'm having SimCountry dreams at night. Anyway, you can still use profit transfer instead of tax to get $$ from them.