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HopefullyFunny69 t1_jbe8a5p wrote

Why the fuck does Nvidia not pay taxes?

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goldcakes t1_jbemuq9 wrote

Because semiconductors are a national security matter.

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si3rra_7 t1_jbeu07k wrote

yep. if china wakes up cranky and "special military operations" Taiwan, let's just say that your next Iphone is gonna be delayed

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Torontogamer t1_jbfzwct wrote

Lets just say your next... most everything is going to be delayed...

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[deleted] t1_jbgsggj wrote

let's just say there's isn't gonna be a "next"

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Obvious_Chapter2082 t1_jbesfa9 wrote

Go look at their 10-K, they paid around $2 billion, or a 50% tax rate. The reason their income tax expense is negative is due to R&D getting capitalized this year, so they get a large deferred foreign benefit, but that doesn’t reduce the actual tax they owe

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the_fart_king_farts t1_jbeca4x wrote

Wait till you hear about how Ireland uses this to fuck over every other country in the EU.

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Obvious_Chapter2082 t1_jbesgvv wrote

Nvidia’s situation has nothing to do with Ireland though

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the_fart_king_farts t1_jbeu641 wrote

I guess; every company does this. My point was that it isn't only them doing horrible things.

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Cakeking7878 t1_jbh3f62 wrote

Yeah here in the ol’ US of A, it’s Delaware, not Ireland

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Obvious_Chapter2082 t1_jbh46g2 wrote

Eh, it doesn’t really have to do with Delaware either, that’s mainly for legal reasons anyways

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Cakeking7878 t1_jbh9vjb wrote

If your not aware, Delaware is a tax haven. One address in deleware has a few hundred thousand odd companies are registered at it

A video on it as well

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Obvious_Chapter2082 t1_jbhazs9 wrote

Most companies incorporate in Delaware for the ease of it and the legal protection, since they have a chancery court for corps

It can help tax-wise, but only with state taxes. And enough states have combined reporting laws at this point that the benefit is pretty thin anyways

In either case, Nvidia’s state taxes here are a very negligible portion of their tax expense

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Fit-Plant-306 t1_jbg2qzv wrote

There are many charts like this on Genuine Impact’s app and are all similar. Corporations barely pay any tax. Good ol trickle down…

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Obvious_Chapter2082 t1_jbg3p5s wrote

This is the danger of looking at highly technical tax information and assuming it’s a simple read. If you dig into the 10-K for this company, they actually paid about 50% of their profit in tax this year. The discrepancy comes from a new R&D capitalization policy, which gives them a deferred tax benefit on their foreign derived intangible income. This benefit is only a small portion of the actual higher tax they’ll pay from this policy, but the US portion doesn’t impact effective tax rates

It’s wrong to say that corporations barely pay any tax, because income tax expense is a misleading metric that doesn’t relate to the tax a company pays

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Ayemann t1_jbexv6v wrote

haha right, 4.4b in profits, meh, tax credit.

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Mangalorien t1_jbem0an wrote

They likely have good tax managers, tax specialists, tax advisors and tax consultants. Keep in mind that hey will still be paying other taxes like payroll taxes, property taxes and similar.

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