Re:Janet Yellen to call for global minimum corporate tax rat...
by gruez on Monday April 05, 2021 @04:48PM
(#26704511)
That'd make sense if delaware had a low corporate tax rate, but it doesn't[1]. If you wanted to relocate your profits to a low tax jurisdiction, you'd want something like north carolina (2.5%) not delaware (8.7%).
[1] https://taxfoundation.org/state-corporate-income-tax-rates-b...
Re:Janet Yellen to call for global minimum corporate tax rat...
by logifail on Tuesday April 06, 2021 @03:29AM
(#26709072)
...because [under the "loophole" / arrangement we're discussing] Delaware doesn't tax (any of!) the income from those intangible assets[0]?
https://udel.edu/~pollack/Downloaded%20SDP%20articles,%20etc...
> if delaware had a low corporate tax rate
Hard to set the corporation tax rate (for income on intangible assets) any lower than zero.
Company transfers intangible asset to subsidiary in Delaware, "trademark or naming rights"[0], its locations elsewhere pay the Delaware subsidiary for the use of those rights, lowering their profits(?), and the Delaware subsidiary doesn't have to pay tax on that income and resulting profit?
[0] https://www.theatlantic.com/business/archive/2016/10/dont-bl...