It works similar here in Ecuador - but most business are just not as big to get out of the "Micro-Business" sector. Income tax is incredibly low (if income is below 20k a year, you pay 60$ flat. Above that, you pay 1 cent for each dollar above the 20k), and even if I had any losses - they would probably not make that much of a difference. But the big businesses, they have it all figured out :-D
Never my way of doing business, but it's what is supported by the tax system. So, each nation get what they ask for in that way.
Here it's the opposite. Not only everyone have debt, it is highly encouraged. This is because debt payments are expenses and therefore tax deductible.
Most private people here have debt as well. Most people I know have debt. I don't like it. Never spend more than you have, and especially don't spend on something you don't need.
Tax rate is 35% here;)
Yeah, Germany is kind of the same :-D Makes it easier here, though there are many other different waters to navigate. Just so... different.