Because of this, many people recognize that there is a lot of comparison between Tencent and Huawei, but they do not know that the two are completely different companies, and there are great differences. So, what is the difference in annual tax payment between Huawei and Tencent, which are the leading enterprises in the industry?
In the data released in 2020, Tencent's revenue reached 482.1 billion, of which the net profit was 159.8 billion; although Huawei's revenue reached 894.1 billion, the net profit was only 64.6 billion, and the gap between the two sides was very obvious. What makes people wonder is that Tencent's net profit is more than twice that of Huawei, but Huawei's tax revenue in 2020 is 101 billion, while Tencent's tax revenue is only more than 20 billion, and the gap between the two sides has reached a staggering five times.
Why does Tencent have high net profits but low taxes?
In the profit data of Tencent and Huawei, we can clearly find that there is a big difference in the actual tax amount of Huawei and Tencent, and Huawei has such a huge revenue, why is the actual net profit far less than Tencent? The appearance of these data has left many people scratching their heads.
In fact, there are many reasons here, and the main reason is that the nature of the two enterprises and the place of registration are different.
Registration differences
We often call Huawei the pride of China, and when everyone calls Huawei, they will also call it "China Huawei", compared to Huawei, Tencent is right to use "China Tencent", but obviously not as pure as "China Huawei". This is because Huawei's registration place is in the mainland, while Tencent's registration location is in the Cayman Islands, to know that the Cayman Islands is a famous "tax haven", there are many capital enterprises in the mainland will choose to register companies in the Cayman Islands.
If the company is registered in the Cayman Islands, it means that the registered ownership of the listed company also belongs to the Cayman Islands, and the subsequent registered profits will be divided into Hong Kong, Macao and other regions of the mainland, and only the business premises are in the mainland. In this way, Tencent and other companies can successfully complete tax avoidance and tax according to 5% of Hong Kong's tax rate, while Huawei is the opposite of Tencent, because Huawei firmly chose Chinese mainland at the beginning of registration.
Companies operate in different fields
We must know that Huawei and Tencent are two completely different kinds of enterprises, Huawei belongs to the scientific research and innovation and communication hardware research enterprises, and Tencent is a company that operates on the Internet as a module, so there is an essential gap between the two. Tencent can achieve "low-cost and high-profit" returns with the Internet, while Huawei needs to spend a lot of money every year to cultivate relevant scientific research talents, and the actual annual cost of scientific research investment is very high.
Take the semiconductor that Huawei has been developing recently, to know that this project is very severe, not only to spend a lot of time and energy, but also to ensure the smooth investment in scientific research, so Huawei has no way to compare profits with Tencent. In addition, Tencent's research only requires the high-quality Internet operation team to design some new modules of games or social software, even if a new skin is designed in the glory of the king can achieve huge profits, the gap between the two sides can be seen.
Variance in operating costs
Secondly, as a hardware company, Huawei's actual daily operating costs are very large, and the salary that Huawei pays to employees every month also exceeds Tencent's operating costs.
It can be said that Huawei needs to take out eight hundred yuan to ensure the cost of operation to earn a thousand yuan, on the contrary, Tencent only needs to take out six hundred yuan to operate the cost of making a thousand yuan, which is the operational gap between them.
The Internet diversifies profitably
As long as the Internet company's brand is loud enough, a large number of advertisers will find Tencent to cooperate every day, but Huawei does not have such profitability. Huawei can only rely on the development of technology and intelligence to achieve profitability, while Tencent can rely on any industrial chain closely related to the Internet to diffuse, whether it is Tencent Games, WeChat or Tencent Video.
In recent years, huawei on the mainland has fallen into a freezing stage because of sanctions imposed by the United States and other Western countries, but Huawei's spirit and courage not to give up have been loved by countless Chinese people.
epilogue
Huawei only hopes that China can make leading breakthroughs in the field of scientific research, rather than simply for the so-called profit to start a business, so Huawei's welfare treatment of employees is very significant, which is what everyone should respect, and China's Huawei is undoubtedly a good example.