Electronic Arts will receive a $1.7 billion tax break. All thanks to Switzerland
Electronic Arts has transferred part of its IP to its Swiss division, where it has its headquarters. Thanks to this, the company plans to save $1.7 billion on tax deductions.
The company’s management announced this in the financial report for April-June 2019 (for EA, this period is considered the first quarter of fiscal 2020).
The transfer process took place in parallel with the referendum in Switzerland, which changed the income tax benefits.
As a result of the transfer of intellectual property rights, EA has already received a benefit of $1.08 billion at the end of the previous quarter. She expects another deduction of $620 million by the end of September, when the referendum will take effect.
Due to tax compensation, EA’s net profit for the end of April-June 2019 amounted to $1.4 billion. Last year, the company earned $293 million in the same quarter.
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