Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Salesforce paid no federal income tax in 2020 despite $ 2.6 billion. In profit

Salesforce paid no federal income tax in 2020 despite $ 2.6 billion. In profit

Salesforce, San Francisco’s largest private employer, was according to 55 new U.S. companies that did not pay federal income tax by 2020, according to a new report.

The cloud computing giant had $ 2.6 billion in net income in fiscal year 2021, which ended Jan. 31, according to archives from the Securities and Exchange Commission. Instead of paying about half a billion dollars in taxes – based on the corporate tax rate of 21% – the company receives a refund of 12 million dollars, according to the Institute for Tax and Economic Policy, a non-partisan think tank that released the report.

Salesforce had no net tax liability over the past three years with an effective net rate of -0.1

% according to the institute. FedEx and Palo Alto-based Hewlett-Packard were some of the other companies that did not pay federal taxes.

The institute said Salesforce benefited from writing off expenses for senior stock options. Sunnyvale semiconductor company Advanced Micro Devices and Nike also used the practice and paid zero in taxes, according to the report.

Salesforce has over 10,000 employees in San Francisco and is the city’s largest private employer. The company declined to comment.

Other tax benefits used by companies included research and experiment credits, renewable energy credits, and companies that depreciated capital investments.

Salesforce CEO Marc Benioff was a proponent of a 2018 San Francisco tax measure, Proposition C, which he said would increase the company’s annual tax by $ 10 million to $ 12 million, which he described as a negligible amount.

The measure to fund housing and homelessness services went a year after the Trump administration and Congress cut corporate taxes from 35% to 21%, benefiting Salesforce and many other companies.

Salesforce told Wired magazine in 2019 that it did not take a stand on the federal tax cuts and that it was lobbying on two minor things.

The company previously said it has contributed more than $ 150 million to philanthropic efforts in the Bay Area, including education, homelessness, small business assistance and workforce training.

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