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Twitter to go Double Irish and Dutch Sandwich tax structure
You might be wondering what in the U.S. I’m talking about. Well, that’s exactly the point.
Twitter, following in the steps of Apple, has already secured office space and an international company “Twitter International Company” in Ireland.
Essentially, Twitter is doing this to avoid the extremely high 35% tax rate that they could face in the U.S., should they continue funneling money and eventually advertising money into the U.S.
Twitter will have all of it’s international money most likely go through the Irish company, so that they are taxed at a lower rate.
The problem would come in if and when Twitter ever tried to bring that money back into the U.S., they would be taxed again on it, most likely at the 35%. However, analysts say that the chances of Twitter bringing that money back into the U.S. is unlikely.
They do international business now so it’s not like they are doing this to avoid U.S. taxes, I mean, they are but they have the right to do business internationally and pay other taxes from those countries. Tax shopping, if you will.