sail away sail away sail away
Today I learned that cruise companies don’t pay income tax because they claim they earn their income “on the high sea.” Often, cruise lines are registered as businesses of small countries like Panama (Carnival), Liberia (Royal Caribbean), or the Bahamas, so they avoid a corporate tax as well.
Typically, income must be accounted for where it is earned, regardless of the company’s origin (ie - if a company from France earns income in the US, it would be subject to US income tax laws (with nuances, of course)). I’ve heard that cruise lines won’t serve any alcohol or earn any income until about 10 miles off the coast. Cruises aren’t my digs so perhaps someone else can attest to that.