A tech company based in the United States had the same gross income in 2016 and 2017. In late 2016, it created a subsidiary in Qatar. In the 2017 tax year, it paid 25 percent less in taxes. Which statement BEST explains this?
(1 point)
Responses
The subsidiary in Qatar is not doing as well financially.
The subsidiary in Qatar is not doing as well financially.
Labor in Qatar costs less, so expenses for workers decreased.
Labor in Qatar costs less, so expenses for workers decreased.
The tech company lost money due to the purchase of the Qatar facility.
The tech company lost money due to the purchase of the Qatar facility.
The company created the subsidiary to take advantage of Qatar’s lower tax rate.
The company created the subsidiary to take advantage of Qatar’s lower tax rate.
It did not have to pay taxes on the income when it brought it back to the United States.