Way to avoid Corp tax

  1. intercompany interest charges – having an intercompany, such as a headquarter or a parent company that lends debt into a company so that the company would set the interest rate to pay interest to offset the profit. Note that the company that receives the interest would be paying taxes on the profit if the interest revenue generates profit
  2. royalty agreement – having the royalty set to a percentage of the sales to increase the expense
  3. loss carryover – having prior year losses transfer to the current year if profit is present
Posted in: Tax

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