Netflix Made Record Profits in 2020, Paid a Tax Rate of Less Than 1 Percent

Re:Netflix Made Record Profits in 2020, Paid a Tax Rate of L... by gamblor956 on Monday April 05, 2021 @03:01PM (#26703143)

Now mega-companies spend money on intangible assets but they can expense immediately, so tax is deferred and they can grow without that tax friction.

Acquired intangible assets must be amortized (aka depreciation for things that don't physically exist) over 15 years, not immediately (some intangibles can be amortized over a 3-5 year time frame). And self-developed intangible assets cannot be amortized at all.

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Re:Netflix Made Record Profits in 2020, Paid a Tax Rate of L... by throwaway667555 on Tuesday April 06, 2021 @06:40PM (#26718288)

I don’t see the assets on their balance sheets? I.e, they’re being expensed. Our disagreement is about the definition of intangible asset. Under current regulations, intangible assets are understated versus reality. This is my point.

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