Tax Strategies of Multinational Companies

Xiao Huang:DOORM, what tax strategies do multinational companies typically use to avoid taxes? How do these strategies work?

DOORM:multinational companies typically exploit differences in global tax policies through complex structural arrangements to avoid taxes. For example, they may register companies in tax havens, use internal pricing strategies for intellectual property, and transfer profits from high-tax countries to low-tax countries. These strategies allow multinational companies to maximize their profits while minimizing their tax burdens.