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The trump tax changes actually did. IIRC, a US corporation is taxed either 20% of US net income or 10% of global net income with credits for overseas taxes paid, whichever is more. Corrections welcome, I likely misremembered something. The idea being if you paid at least 10% on the income in the jurisdiction where it was earned, great; if not, you'll pay it at home.

This replaced a higher rate on US net income and global net income that lands in the US.



Incorporate in a low/zero-tax jurisdiction.

Form a second corporation that resells your product to your US customers at an insignificant markup. It pays tax only on said insignificant markup.

The company it buys from has no US operations or dealings of any kind, therefore does not even file US returns.


Looking up “transfer pricing regulations” to see why this doesn’t really work.




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