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Question on Tax Rate
Posted: Sat Sep 03, 2016 2:58 pm
by Spac3y
Hi David,
Can you advise on the tax rate, as in, is it based of where my headquarters are ? Or is it just based of each unit in a city and that tax rate ?
Reason I ask is that im intrigued that if i move my HQ to a different city, one that I control, I can lower the tax I pay ?
Re: Question on Tax Rate
Posted: Sat Sep 03, 2016 3:26 pm
by eleaza
Spac3y wrote:Hi David,
Can you advise on the tax rate, as in, is it based of where my headquarters are ? Or is it just based of each unit in a city and that tax rate ?
Reason I ask is that im intrigued that if i move my HQ to a different city, one that I control, I can lower the tax I pay ?
I think it's calculated at the firm level. So each operating firm get taxed at each city's tax rate, and since HQ doesn't have income, I don't think it matters where it is. And other profit doesn't get taxed (like stock return, land value increased etc), and strangely real estates don't get taxed (they are not "firms, and without their own financial statements, so they get left out in tax).
Re: Question on Tax Rate
Posted: Sun Sep 04, 2016 3:15 pm
by WilliamMGary
eleaza wrote:Spac3y wrote:Hi David,
Can you advise on the tax rate, as in, is it based of where my headquarters are ? Or is it just based of each unit in a city and that tax rate ?
Reason I ask is that im intrigued that if i move my HQ to a different city, one that I control, I can lower the tax I pay ?
I think it's calculated at the firm level. So each operating firm get taxed at each city's tax rate, and since HQ doesn't have income, I don't think it matters where it is. And other profit doesn't get taxed (like stock return, land value increased etc), and strangely real estates don't get taxed (they are not "firms, and without their own financial statements, so they get left out in tax).
Why can't real estate be taxed by the profits of ""Apartments" "Commercial Buildings" as a unit together. So if you have 5 apartments and bring in $1 million profit that $1 million is taxable based off where the company is HQ.
Re: Question on Tax Rate
Posted: Sun Sep 04, 2016 3:36 pm
by eleaza
WilliamMGary wrote:
Why can't real estate be taxed by the profits of ""Apartments" "Commercial Buildings" as a unit together. So if you have 5 apartments and bring in $1 million profit that $1 million is taxable based off where the company is HQ.
I think it's just a bug. Since real estate buildings don't have their own financial reports, so get left out.