[swampthing]

Exactly, and salaries are generally deductible as a business expense from the company's income. So you're not getting double-taxed there.

[foreign-inc]

I am certain that you pay taxes on revenue, not on profit.

[swampthing]

The company pays taxes on its income, but the salaries are generally deductible from the income that the company is taxed on (as are a whole bunch of other expenses).

[gamblor956]

Businesses pay tax on profit, not revenue.