The New York Times reports that Apple cuts billions of dollars of its worldwide tax bill through a strategy of operating offices in low-tax regions.

The Times on Sunday explained the process citing an office Apple runs in Reno, Nevada, with a handful of employees. It reported that Nevada’s corporate tax rate is zero, while California levies a corporate tax of more than eight percent. It added that Apple sidesteps millions of dollars in taxes by operating the Nevada office.

The Times continued that just like Nevada, Apple has created subsidiaries in other low-tax areas like Ireland, the Netherlands, Luxembourg and the British Virgin Islands to avoid high taxes.