How Did Amazon Avoid Paying Taxes From Last Year's Success?
During the pandemic year, Amazon’s growth was remarkable. Yet, during 2020, Amazon’s effective tax rate was only 9.4%, a rate that is much lower than the standard 21% corporate tax rate. One of the many tax strategies Amazon uses includes tax credits, depreciation, and many more. If Amazon pays 21% of corporate tax from its profits, its tax payment would have been $4.1 billion, but the Company only paid $1.8 billion, a large tax saving of $2.3 billion! Unlike tax evasion, tax avoidance is legal. If you run a successful business, you would want to make sure that proper tax planning strategies are implemented so that you would avoid giving away your hard-earned money.
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