The downside of high manufacturing profits is you won't see the tiny little flags next to your name you only get them for retail profits.
I personaly think the tax system overall is flawed though. For example:
--> 2 turns ago I had revenues of 2,427,673,785$ (2,4 billion).
--> My expenses were 3,282,983,246$ (3,2 billion).
--> Thus I had losses of about 800 million $.
--> Yet I paid taxes in the amount of 557,939,962$ (557 million).
When looking at my revenues and expenses you see that I have a huge net operating loss (NOL). That means my tax deductions are greater than my taxable income, resulting in negative taxable income. In the real world I can use NOL even to recover past tax payments (read on NOL carryback e.g.).
Real world example: In year 1 you make losses of 1 million, in year 2 you make profits of 10 million (not revenue, actual profits). You would pay taxes only for 9 million, because that's what you're actually ahead of your expenses.
The problem in the game is shown by this example:
--> You have revenue of 1 billion in country/region 1. No expenses in this region.
--> You have expenses of 2 billion in country/region 2. No revenue in this region.
--> Thus you will have no profits, but losses of 1 billion.
--> If country/region 1 != country/region 2 you will be fully taxed for the 1 billion revenue you made in country/region 1 completely leaving out the fact that you had expenses of 2 billion somewhere else.
In the real world this works completely differently for international companies. A company which has stores in Germany and France for example and has a revenue of 100 million in France (no expenses) and expenses of 200 million in Germany (no revenue) would not pay taxes, because it has a NOL which is valid in either country due to bilateral tax agreements. I don't know if there exist such agreements in the real world between the African countries in this game, but they do for sure with all the European countries. Also the tax of 30% you have in Dubai is completely unrealisitc. In real life there is no capital tax in Dubai and they don't even have income taxes (an exception are oil producing subdivsions of foreign companies). |