Every corporation pays taxes if the tax rate is > 0%. Taxes are based on the profit a corporation. A country offering zero taxes implies that any corporations residing in that country will not be paying any taxes every month.
Profit transfer is controlled by the majority owner of the corporation (the state for State-Controlled and Country Controlled Public Corporations, and the enterprise for Privately Held, and Enterprise Controlled Public Corporations). Profit transfer means that after all other expenses are paid, including taxes, what percentage of the net profit do you want to transfer to the controlling entity.
The last logical question is: "Given we see so many countries offering 0% taxes, how do they make any money?" Besides taxes, there's a second method for countries to make money from hosting privately controlled corporations. From the Corporation point of view, the cost is called "Country Resources Us
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Adrian Perez (Little Upsilon)
All worlds
Lol, I think I learned a few things in that post as well :P
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Stephanie Forrester (Little Upsilon)
All worlds
So the bottom line is you get more profit on zero taxes and zero profit transfer on ceo's companys so I get the point now and thanks for the explaination.
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Daelin (Little Upsilon)
All worlds
Not exactly. You technically get slightly less profit with zero taxes, given than any amount of taxes is greater than zero taxes. However, the amount is nominal and zero tax rate is used as an inducement to get CEOs into your country. As a country, your profit transfer setting ONLY affects companies you control (State corps and country controlled public corporations). It has no effect on private CEO corps. THEIR profit sharing setting (in their CEO) is what decides how much profit their corporation shares with their CEO.
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Stephanie Forrester (Little Upsilon)
All worlds
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Akasha (Little Upsilon)
All worlds
Ummm....the topic about ceo taxes and profit sharing really isn't so complicated.....
Basically, you don't make much more money by charging a corp tax and your country looks alot more attractive to an investing ceo if you have a 0% tax.
AS a country president, you will automatically be paid through the country resources used money and those revenues are plenty more than worrying about the small amount of additional money you get from having a tax. I have both countries...all set at 0% tax and an enterprise.
For my enterprise corporations, I will ONLY invest in 0% countries and if any country gets a tax AT ALL I instantly move to a 0% tax country. The reason why I only choose 0% tax countries is because I just don't think it's fair as a CEO owner and corporation owner who brings additional revenues to the countries I invest in, that I should have to basically pay "double taxation" through the unavoid
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Berand (Little Upsilon)
All worlds
This is a great post. Thanks to all who contributed, both the questions and the answers.
I hope it will be helpful to all new(er) players like myself.