Google&friends are not making money and competing "like any other business".
I don't understand this. Can you explain, please?
This is not specific to big tech though, it's a single point of failure of having a centralised government that is easily corrupted by rich corporations.
https://en.wikipedia.org/wiki/Base_erosion_and_profit_shifti...
https://en.wikipedia.org/wiki/Double_Irish_arrangement
https://en.wikipedia.org/wiki/Dutch_Sandwich
Take the billions of dollars that you've saved from BEPS and use it to subsidize your local products, or run ads attacking the competition, or taking them to court, or hire salespeople, or build new content. Simple.
That's plain wrong. Every company only pays income tax in its country of residence. The only difference is that there might be a sales tax for physical goods.
That is not correct. Taxes are payable wherever the profits are made.
It is usually the case that the country where the company is headquartered will have a far greater proportion of profits compared to revenue because a lot of the things that add value happen there, but in the case of large tech companies, this is taken to the extreme, where not just profits, but even revenue itself is shifted from where the business actually happens.
For example, Google reported £1.6bn (US$2.1bn) in revenue and paid £44m ($58m) in corporation taxes (on profits of £231m ($303m) based on a 19% tax rate) in the UK for the 2019-20 financial year, but its actual UK revenue is estimated to be around £5.7b ($7.5b) for the same period.[1]
Whereas car companies have consumers as their customers and have to pay sales tax, AdWords expenditure by businesses is considered a business expense and is not taxed (in the UK). If they played by the same rules, they would have paid around £1.14b ($1.5b; based on 20% VAT) in tax in 2019-20, instead of £44m.
1. https://www.theguardian.com/technology/2020/apr/07/google-uk...
No, with regard to income tax that's simply wrong.
That said, public companies typically have subsidiaries in other countries and these subsidiaries have to pay corporate income tax in their country of residence (but also regardless of where the profits are actually made). This is often used to avoid (or delay) tax payments, especially if the subsidiaries are in low-tax countries.
But if the parent company Apple Inc. sold an iPhone in Germany, they wouldn't have to pay income tax in Germany, just like BMW AG doesn't have to pay income tax in the US.