It is not hard to imagine that Amazon paid $0 Federal Income Tax in 2018. Amazon is a huge company and it pays taxes like other companies. In fact, Amazon is one of the biggest beneficiaries from the recent IRS tax reforms. Here are some quick thoughts to understand if you were also eligible for this big tax benefit.
First, let’s analyze how Amazon paid its taxes in previous years. It incurred taxes on its net income and gross profit. Its gross profit margin was determined using a percentage which includes fixed and variable profit. For the year ended June 30, 2018, the gross profit margin was 42%. You can clearly see that Amazon paid Feds a hefty dividend this year. That means that the company continues to profit, despite the recent setback caused by the global economic crisis.
The second thing to observe about Amazon is that it pays taxes in many countries across the globe. The company is active in many countries across Europe, the Middle East, Australia, South Africa, India, Latin America and the Caribbean. All these nations have separate taxation systems and they levy their own taxes. To make it easy for customers to locate where their taxes are imposed, Amazon publishes its Tax Details page on its website.
Finally, you should ask yourself how much do you love Amazon? If you love Amazon, then you will appreciate the fact that the online retail giant paid an Feds to tax in the very first quarter of its operation. If you have a credit card, a mortgage loan or savings account at any bank, you can withdraw money from your account at any time. You can also deduct your expenses such as travel, fuel and car rental on your tax return.
The good thing about Amazon’s structure is that it offers a very simple Tax Benefit Strategy. Customers have to provide basic information such as their street address when ordering. Customers are not obliged to pay taxes on items that they buy online. In short, Amazon takes care of collecting taxes on sales. As an investor, you should now be able to see how lucrative and profitable Amazon’s Tax structure really is.
If you have been looking for a new online business opportunity, you should take a close look at Amazon. It has a very simple structure with a focus on customer satisfaction. In short, Amazon is one of the few e-commerce platforms to have successfully paid the Federal income tax.