Saturday, 25 February 2012

Corporate Income Tax-Initial Public Stock-Social Network-Tax Rate-Facebook

Facebook's high tax rate likely to drop

(Reuters) - Facebook, the social network giant on the verge of a huge initial public stock offering, pays an unusually high tax rate, but that is likely to change soon, analysts said. At 41 percent on an effective basis, Facebook's tax rate is well above rates paid by larger, more mature high-tech groups, and above the top U.S. corporate income tax rate of 35 percent. But the exercise by investors of millions of stock options after the IPO, along with the opportunity for Facebook to shift more earnings overseas like other tech firms, will pull down its tax rate almost immediately, experts ... read more..

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