| neutralsc | Thursday, February 10, 2022 - 12:28 pm 
Tax = transfers (gross) profit to the country (before profit transfers) regardless of the owner.
Profit transfer = transfers net profit after taxes to its owners in the proportion the owner owns the corporation.
You should view your country as a business and therefor see your corporations as a tool in your favor. Transfer profit is all about cashflow. The less cash your corporations need, the more cash-efficient, so you want to suck out as much cash out of your corporations. Especially if you are not the owner.
Sidenote 1: Profit transfer somehow affects net profit negatively (i dont know why because irl it shouldnt). This is just an accounting consequence and does not really matter, however if you want to IPO it does matter, because market value is derived from net profit. So if you want to IPO, temporarily setting profit transfer at zero makes sense. Excess cash in corporations are eventually transferred to country at lower than 100 profit transfers. However personally I have the suspicion that country controlled public corporations do not transfer this money in country, but does transfer out of corporation and this is an unaddressed bug. But im not sure.
Profit transfers are made to the corporations owners in the proportion you own the corporation. So if you have (almost) only 100% state corporations, taxing does not add value, but does depress market value. So I use 100 profit transfer with 0 tax in that case. This is the case with my country -Giant Bananas on WG- currently. How does cashflow look like?
> State corporations
Revenue: +100
Costs: -90
= Gross profit: 10
Tax 0%: -0
Profit after tax: 10
Profit transfer 100% of 100% ownership: -10
>> I received 10 of total 10 profit because I own 100%
What If I had tax at 30?
Revenue: +100
Costs: -90
= Gross profit: 10
Tax 30%: -3
Profit after tax: 7
Profit transfer 100% of 100% ownership: -7
>> How much do I receive? 30% of 10 = 3 due tax PLUS 100% of 7 because I own 100%. So 10 in total, same as Profit transfer 100 with tax at 0, but market values will be higher.
On -G Bananas Alma- on WG I have however a mix of state corporations, country controlled corporations, enterprise controlled corporations and private corporations. I have tax 75 and profit transfer 100 here. Why?
Because many corporations I only have a small portion of ownership in so profit transfer doesnt catch the profits in order to transfer them to me (private and enterprise controlled are not even affected by profit transfers I set on country level). So I need to use tax here. How much? As much as I can without leaving them. So here starts the trade-off, and I rather control my own corporations for this reason. Plus its better manageable. That is why many player prefer building own corporations with their own enterprises. But this is maxed at 20. You can use IPO to transfer beyond that, EO made a YouTube of doing how: https://youtu.be/49TtXwF2VoE 
 For me this is way too many clicking.
My advice?
Go with 100% state corporations first. Build natural resource corporations only. Supplies at Q215-222. Profit transfer at 100. Tax at 0. Natural resource corporations have superior profits and do not require many high skilled workers. Close all other corporations. Make sure you have sufficient production plants in country stock.
Once depleted, with pop of 70m+, start diversifying with defense corporations. They have similar profit profiles as natural resource corporations per worker, but do require higher skilled workers and therefor higher eduction. This is when you really need to have education at 200+. Education priorities should be set at levels where the -unemployed profession- graph is not having a decline pattern. If you cant seem to manage this, upgrade education level. I prefer 200+ due manageability, allthough probably 180ish is more efficient.
Once you become really big (120m+), diversifying into other corporation types makes sense as a defensive measure, in case the others become less profitable or unprofitable due market changes or game changes. But they tend to be less profitable on itself. But once big you need to remind yourself you are a big mammoth instead of tiny and flexible. GM pushes changes from time to time so you need to be able to absorb such caused shocks.
Focus on setups that are the most click efficient to build and manage. Dont go for the best counterfeit money efficient strategies, because after all, its just counterfeit money and therefor just a building tool. Thats why I prefer small and tall empires, instead of large empires.
> Better manageable. If you have 4 large countries, you need to control 4 countries, instead of 16 if you have 16 smaller ones. Although, strictly, 16 smaller ones would be more profitable in total counterfeit money wise.
> More country score points. Large populations results in high country score points which results in crypto/gc awards.
> GM Andy prefers small and tall, instead of large and extended. You should take notion of what he says and learn how he thinks, because thats the way the game will be headed. He noted this on Wednesday, January 5, 2022 - 11:37 am in this thread: https://www.simcountry.com/discus/messages/1/29089.html
> Higher game levels are easier reached due the fact your empires are better manageable. This gives you GC bonus and country score points > awards.
> Better defendable. Small and taller empires are better defendable and better manageable in case of war. Also when you are very large, you can deploy a massive defensive army without being unprofitable. This allows you to have a more passive defense strategy. |
