How Apple Avoids Paying Billions in Taxes
Apple (NASDAQ: AAPL), the world's most valuable company, has gotten there by making all the right moves. One of those moves involves setting up an office in a town known more for gambling than technology, according to The New York Times.
Reno, NV is located just 200 miles from Apple's Cupertino, CA headquarters. Apple has an office in Reno, staffed by a handful of employees for the purpose of collecting and investing the company's profits. Why? California has a corporate tax rate of 8.84%, while Nevada's tax rate is zero.
Apple has set up similar "offices" in other parts of the world, including Ireland, the Netherlands, Luxembourg and the British Virgin Islands, where taxes are low.
How much did Apple save in the U.S. alone last year with this tax strategy?: About $2.4 billion.
Not bad, even for a company valued at $600 billion.
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