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Marcus Zacher
These financial reports show that Tesla's Singapore subsidiary, Tesla Motors Singapore Holdings, earned around $18 billion in profit from 2023 until early 2025 from the Dutch firm TM International, over 99% of which is owned by the Singaporean entity.
TM International is documented in the Netherlands as a non-resident partnership that has no staff. The company does not have to submit financial statements or pay taxes in the Netherlands. It serves as a transit location for sending profits to the Singapore branch, which is also free from taxes on these earnings.
The agency indicated that Tesla's profit shifting happened following the transfer of intellectual property rights to its overseas subsidiaries during the 2010s.
As reported by Reuters, without this typical corporate strategy, Tesla would need to report this $18 billion profit in the US and incur taxes. This "profit shifting" probably saved the firm more than $400 million.
Reuters identified no indications that Tesla's tax practices breached any laws. The company is probably not the first in the US to move profits overseas. This is a typical strategy employed by multinational corporations to take advantage of tax loopholes, allowing them to reduce expenses by transferring profits from one location to another with more advantageous tax regulations, the agency notes.
source: reuters.com
TM International is documented in the Netherlands as a non-resident partnership that has no staff. The company does not have to submit financial statements or pay taxes in the Netherlands. It serves as a transit location for sending profits to the Singapore branch, which is also free from taxes on these earnings.
The agency indicated that Tesla's profit shifting happened following the transfer of intellectual property rights to its overseas subsidiaries during the 2010s.
As reported by Reuters, without this typical corporate strategy, Tesla would need to report this $18 billion profit in the US and incur taxes. This "profit shifting" probably saved the firm more than $400 million.
Reuters identified no indications that Tesla's tax practices breached any laws. The company is probably not the first in the US to move profits overseas. This is a typical strategy employed by multinational corporations to take advantage of tax loopholes, allowing them to reduce expenses by transferring profits from one location to another with more advantageous tax regulations, the agency notes.
source: reuters.com
