As a global cross-border e-commerce giant and a legendary business giant, how does Amazon make the most money without paying a penny in tax? This article will introduce how Amazon reasonably avoids taxes through legal and tax means.
We all know that Amazon has reached an unshakable position in terms of company size and market value, but its tax team is so awesome that it has not paid a penny in federal income tax for two consecutive years, and it can also make the US government at all levels feel at ease. It is indeed quite capable. This is a domestic tax management system that is different from that of other countries.
Because of the famous “three-step system” that exists now, American companies need to pay double taxes at the same time, which can be said to be overwhelming, but both state and federal governments have adopted some effective methods to allow companies to continue their business activities while paying taxes. For example, the introduction of preferential tax policies for high-tech technology research and development, Amazon’s senior executives saw this point and registered their headquarters in Silicon Valley from the beginning (because of the extremely favorable tax policies). As long as Amazon continues to invest in high-tech projects, the entire project has the power to reduce taxes and subsidies, and can also use this part of the tax subsidies as part of corporate welfare to attract high-tech talents again.
Secondly, Amazon has a stock option deduction policy, which is very consistent with the system of American capitalist society. It can also reduce taxes through stock options. In addition, it takes advantage of the local government’s preferential policies for attracting investment, so that as long as local governments hear the “Amazon” cross-border e-commerce golden signboard, they can’t wait to introduce it to the local area. After all, Amazon can solve thousands of employment problems and drive the development of the local economy.
After Amazon successfully got the tax wool from the US government, it moved to a foreign human resources factory in advance before the domestic wind vane changed, and took advantage of the information gap of local policies to successfully obtain overseas tax preferential policies in Europe and other places, so that Amazon can get reasonable tax avoidance as long as it pays a small fee.