Re:Software firms across US facing tax bills that threaten s...
by tomrod on Tuesday April 18, 2023 @10:48PM
(#35623696)
It changes what is considered a deductible expense.
Profits = Revenue net Costs
Taxes are a cost. Taxes are defined as some rate t, tax = t * (Revenue net Deductible Expenses)
So Profits = Revenue - t * (Revenue - Deductible Expense) - Non-deductible Expense
Percent of t is small relative to the value of 100% applied to non-deductible expense. What this has done is to take salary, deployment infra, everything, from Deductible to Non-deductible expense, leaving 20% of what was there before. That is very large.
Profits = Revenue net Costs
Taxes are a cost. Taxes are defined as some rate t, tax = t * (Revenue net Deductible Expenses)
So Profits = Revenue - t * (Revenue - Deductible Expense) - Non-deductible Expense
Percent of t is small relative to the value of 100% applied to non-deductible expense. What this has done is to take salary, deployment infra, everything, from Deductible to Non-deductible expense, leaving 20% of what was there before. That is very large.