How Microsoft moves profits offshore to cut its tax bill
When someone buys a copy of Office at the Microsoft Store in Bellevue Square, that cash doesn’t take the short route to the company’s Redmond headquarters four miles up the road.
Instead, after accounting for state taxes, the profit goes to a Microsoft sales subsidiary in Nevada.
From there, much of that money begins a complicated global trek that ultimately leads across the Atlantic, with two stops on the island tax haven of Bermuda.
Microsoft in the past 20 years built that network of subsidiaries in part to minimize the taxes it pays to governments worldwide.
The company is hardly alone. Many multinational corporations have set up similar structures, in some cases reducing their tax burden to near zero.
— source seattletimes.com | Matt Day | Dec 12, 2015