They actually paid around $2 billion of tax, they didn’t get a benefit

Most companies incorporate in Delaware for the ease of it and the legal protection, since they have a chancery court for corps

It can help tax-wise, but only with state taxes. And enough states have combined reporting laws at this point that the benefit is pretty thin anyways

In either case, Nvidia’s state taxes here are a very negligible portion of their tax expense

Neither of them pay Nvidia

It includes deferred taxes too. Their actual tax for the year was $2 billion

They didn’t get paid tax back, they paid about $2 billion of tax

Eh, it doesn’t really have to do with Delaware either, that’s mainly for legal reasons anyways

That’s not the tax they pay. They paid around $2 billion for 2022

This is the danger of looking at highly technical tax information and assuming it’s a simple read. If you dig into the 10-K for this company, they actually paid about 50% of their profit in tax this year. The discrepancy comes from a new R&D capitalization policy, which gives them a deferred tax benefit on their foreign derived intangible income. This benefit is only a small portion of the actual higher tax they’ll pay from this policy, but the US portion doesn’t impact effective tax rates

It’s wrong to say that corporations barely pay any tax, because income tax expense is a misleading metric that doesn’t relate to the tax a company pays

That’s their second biggest adjustment right after foreign income tax adjustments

It’s included in SG&A

It’s in their 10-K. Their total tax expense is a benefit of $200M, but their current tax expense is $200B. It’s just that their deferred tax expense is a benefit of $202B

>Zero $ in taxes

They paid around $2 billion

Nvidia’s situation has nothing to do with Ireland though

Go look at their 10-K, they paid around $2 billion, or a 50% tax rate. The reason their income tax expense is negative is due to R&D getting capitalized this year, so they get a large deferred foreign benefit, but that doesn’t reduce the actual tax they owe

The tax they paid in 2022 was about 50% of their pre-tax profit

That’s not true at all. The reason their rate is low is due to R&D getting capitalized this year, which increases the amount of FDII they pay.

If you look at the actual tax they paid this year, it’s around $2 billion, or a 50% tax rate

That’s their income tax expense, which isn’t the same thing as the tax they pay. Judging from their 10-K, they did pay tax at around a 50% tax rate for 2022

The longer you wait, the more interest is gonna accrue though

They will. There’s really no difference in voluntarily paying the loans and letting them deduct it for you. I’m not sure why people are so opposed to paying it

Have fun with your garnished wages

There are a lot of things that can raise the effective tax rate without actually changing the amount of tax you’ll pay year to year. Anytime there’s a rate above 30% or so, that’s likely the case

Once their 10-K is released, you can probably get a good guess from their current provision. But I agree, total income tax expense won’t even be close to the actual tax they pay

The foreign impact on ETRs really isn’t large anymore, since the US taxes global corporate income. I would just assume they don’t have a lot of R&D or don’t pay a lot of stock compensation

That’s just their income tax expense. The actual income tax they pay might be much larger or much smaller than this

Most large corps have low rates mainly from R&D credits and stock compensation. I’d assume Capital one doesn’t have much of those, or they could just have a large reconciling item that raises their rate

To be fair, they’re probably only paying a small fraction of that amount in taxes this year