Re:Uber London loses licence to operate
by harryh on Friday September 22, 2017 @07:56AM
(#15311313)
Not all their profits. Just the profits that occur outside of the US. The US corporate tax system is relatively unusual in that it attempts to tax not just profits earned within it's borders but worldwide profits for any company incorporated within the US.
So what US companies tend to do is incorporate subsidiaries in tax friendly locales like the Caribbean (Ireland is also popular) to avoid paying US corporate taxes on this money.
So what US companies tend to do is incorporate subsidiaries in tax friendly locales like the Caribbean (Ireland is also popular) to avoid paying US corporate taxes on this money.
It's quite common.