It seems that Samo and Iza Login, a married couple from Slovenia that officially resides in Cyprus, designed their story in such a way that its employees and game developers cashed in best on the company’s success. Several among its employees have also become smaller shareholders. According to the Finance newspaper and Manager Magazine, the rewards were given out as share options.

When the company was founded in 2010 in north-western Slovenia under the name of Ekipa7, the profit stood at 4.6 million euros, out of which 1.1 million was paid to the state in taxes. In 2016, the Slovenian subsidiary under the name of Ekipa2 reported less than one million in profit, which amounts to approximately no more than 200,000 euros in taxes.

Tax paid in Cyprus
Majority owners appear to have decided to share the gains of development and quick growth with their employees and not to state(s). Samo and Iza Login as well as the Outfit7 corporation are registered as taxpayers in Cyprus, which is renowned for its low taxation and flexible employment practices. Net profit of the group, which consists of several subsidiaries in tax-friendly countries, rose to EUR 80m in 2016 and was mostly paid out to shareholders as dividends. According to past reports by the Manager, Cyprus collected taxes worth about EUR 2m.

It’s all legal. That’s how companies do business nowadays. We’ve seen much more controversial examples. Giants such as Google, Amazon, Facebook and McDonalds have diverted profits into countries that have low tax rates by manipulating transfer prices and similar practices. However, there’s something these web giants and the Logins have in common – a foundation. Although countries cannot capitalize on Outfit 7’s success, certain organizations might, if the couple’s public announcement to fund sustainable development of the world comes true.

Maja Derčar, Radio Slovenija