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EVOOhhYeah t1_jbe6csh wrote

Reply to comment by lo_fi_ho in [OC] NVIDIA's FY22 income statement by giteam

Not only that, but received $200 million in tax benefits for all that R&D spend. Tax breaks for R&D make sense for smaller orgs, but not at this scale. NVIDIA would continue to innovate at this scale without the tax breaks to maintain their market edge.

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lo_fi_ho t1_jbe9o45 wrote

Why they do not pay tax?

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Big_Knife_SK t1_jbeffso wrote

I don't know what the program is called in other countries but in Canada it's called SR&ED. Basically you can claim back up to 70% of the expenses you paid into R&D, including salary.

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Fleinsuppe t1_jbenony wrote

so drug companies also get these huge tax breaks? wtf are we overpaying them for then?

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Torontogamer t1_jbg0f5a wrote

same reason as most places, because that's what they think you'll pay for it ...

conceptually it makes sense to promote drug development, and most development, but in practice it's very hard to implement anything 'fairly' when they are billions of dollars at stake.

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Cakeking7878 t1_jbh3tu5 wrote

Wtf. I keep hearing the whole point of capitalism “but they take risks when they invest, we can’t take away their profits. How will they innovate???”

Mean while they get tax breaks on this “risk”

Privatize profits, socialize the losses, bs is what it is

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A_Doormat t1_jbg9f7r wrote

They do, its just not shown in this particular graph.

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Obvious_Chapter2082 t1_jbes8mq wrote

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

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