According to the latest financial data published, the American electric electric manufacturer will once again experience a curious situation in terms of taxation. The company founded by Elon Musk will pay no federal taxes, despite recent net profits.
While Elon Musk on a personal level he will face an 11 billion dollar tax, Tesla will have to shell out only 839 million dollars for the tax on foreign assets, and another only 9 million dollars for regional taxes. Although Tesla reported a net profit of $ 5.5 billion and an adjusted profit of 7.6 billion, the electric vehicle maker reported that the U.S. side of its operations actually lost $ 130 million in 2021 (pre-tax). More than $ 6 billion of its pre-tax profits come from overseas operations, despite 45% of its revenue coming from sales in the United States.
Speaking to CNN, Martin Sullivan, chief economist at Tax Analysts, said that this situation “it is perfectly legal under United States tax law“. Sullivan believes Tesla may have used a commonly used structuring practice, which allows its overseas operations to carry over revenue. “It is typical of American multinationals. It is very common. It is almost a negligence not to do thisSullivan said. Although the President of the United States Joe Biden has promised to work on these regulatory gaps, so far not much has been done: perhaps this could be a good ground to make friends with Musk …
What is certain, barring regulatory revolutions, is that Tesla’s years of losses will translate into future tax breaks. So the situation is very clear: Tesla may continue to pay no federal taxes, or reduce their amount considerably, for several years. Similarly, Elon Musk will pay nothing in the future, except through his operations in terms of shares, as he continues to receive no salary from Tesla.
#Tesla #federal #taxes #FormulaPassionit