after justin trudeau and uncle sam have their way with their anus they'll be lucky to have 300k left over
That's not how it works.
after justin trudeau and uncle sam have their way with their anus they'll be lucky to have 300k left over
Probably a little bit more than that. EA's effective tax rate these days is 13%. Not necessarily representative with the international character of video game sales but it'd put them more in the realm of $450,000-$550,000.
On average most effective corporate tax rates are around 30% though.
In Ontario:
Small business tax rate
For tax years that end after 2015, the small business tax rate will be reduced from 11% to 9% over four years as follows:
- 10.5% effective January 1, 2016;
- 10% effective January 1, 2017;
- 9.5% effective January 1, 2018; and
- 9% effective January 1, 2019.
As for Uncle Sam:
Article XII
Royalties
1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
2. However, such royalties may also be taxed in the Contracting State in which they arise, and according to the laws of that State; but if a resident of the other Contracting State is the beneficial owner of such royalties, the tax so charged shall not exceed 10 per cent of the gross amount of the royalties.
3. Notwithstanding the provisions of paragraph 2,
(a) copyright royalties and other like payments in respect of the production or reproduction of any literary, dramatic, musical or artistic work (other than payments in respect of motion pictures and works on film, videotape or other means of reproduction for use in connection with television);
(b) payments for the use of, or the right to use, computer software;
(c) payments for the use of, or the right to use, any patent or any information concerning industrial, commercial or scientific experience (but not including any such information provided in connection with a rental or franchise agreement); and
(d) payments with respect to broadcasting as may be agreed for the purposes of this paragraph in an exchange of notes between the Contracting States;
arising in a Contracting State and beneficially owned by a resident of the other Contracting State
shall be taxable only in that other State.