Selling Water Sourced in Space? You Still Owe Taxes to Uncle Sam.

Author(s)
Ulisses Ortiz

This paper gives insight into what businesses and governments should expect as we enter the age of space commercialization. Because wherever profits are found, taxes are sure to follow! Investors, entrepreneurs and governments should be interested in knowing what the expected after-tax proceeds of investing in space will be. This knowledge helps better assess the risks and rewards of space investments. As an example, I analyze taxes on the sale of water extracted from a celestial body for use in space. I will compare the sales from the perspectives of hypothetical individual corporations residing each on the United States, Luxembourg and Mexico, when each of them sells to clients residing in the United States, Luxembourg and Mexico respectively.  The United States and Luxembourg have both passed laws acknowledging the property of resources extracted from celestial bodies. Mexico is included as an example of what the results would be in absence of space-specific property rights.  In conclusion, this study will provide a template for the setup of a tax-efficient structure for entrepreneurs.