Browse Topics
Tools
Editor's choice

Learning Dutch is a must!

Sint comes to town

A guide to childcare in the Netherlands

Dutch u-turn on soft drugs tolerance

Yoga--a beginner's guide and where to take classes in the Netherlands

Report: Expatica's "i am not a tourist" Fair 2009

A parent's guide to the Dutch education system

Amsterdam grapples with integration since filmmaker's murder

Wilders debate: shouting or convincing?

Internaxx Stock Market
Index Last Var.(%)
BEL 20 2119.3 0.50
DAX 5252.45 1.50
IBEX 30 10726.8 0.59
CAC 40 3377.59 1.40
FTSE 100 4564.5 0.79
AEX 276.85 0.95
DJIA 9096.72 -0.13
Nasdaq 1975.51 0.39
FTSE MIB 20341.67 1.65
TSX Composite 10570.54 -1.74
ASX 4148.9 -0.60
Hang seng 20135.5 -2.37
Straits Times 0.00
ISEQ 20 442.48 0.27
You are here: Home Finance & Business Tax US targets "tax haven" Netherlands

11/05/2009US targets "tax haven" Netherlands

US taxes disappear in Dutch-Irish-Bermuda triangle.

The Netherlands is a corporate tax haven for US multinationals and, together with Ireland and Bermuda, it is sheltering companies' earnings from the American tax authorities, a US Treasury Statement suggested on Monday. As long as they keep their earnings overseas, US companies are legally exempt from paying. Taxes only become due when the money is "repatriated" to the United States.

The current practice is perfectly legal, but the US government considers it harmful to the American economy. President Obama announced a crackdown on the tax shelters, aiming to raise USD 210 billion in taxes over the next decade. A Wall Street Journal report in April quoted a figure of USD 58 billion in overseas earnings which are out of the tax office's reach, losing it an estimated USD 20 billion in tax revenue. One third of the foreign profits in 2003 came from what the US Treasury calls, "three small, low-tax countries: Bermuda, the Netherlands, and Ireland."

On Wednesday, the White House retracted its statement that the Netherlands is a corporate tax haven. The retraction came in the wake of an angry denial by Dutch Finance Minister Wouter Bos, who says the accusation is "completely unjust". Mr Bos also said that the Netherlands is not planning to change its tax system.

A spokesperson for Deputy Finance Minister Jan Kees de Jager says the White House informed the Dutch embassy in Washington that the Netherlands would be deleted from the list. "The deputy minister is glad that the misunderstanding has been cleared up."

Barack Obama
The Netherlands: a corporate tax haven?


US companies pay a 35 percent corporate tax, which can be reduced by various allowances, yielding an average of 22 percent. Taxes levied abroad are much lower, with Ireland's corporate tax at 12.5 percent. The Dutch rate is 25.5 percent. Only earnings made abroad by Dutch branches of multinationals which are based on their proprietary rights are not taxed under the Dutch system.

3 reactions to this article

twopenneth posted: 11-05-2009 | 2:11 PM

I think the exemption of royalties, patents, etc, is a bit unfair when we are talking about big artists like U2 and big companies like Unilever. But if you will look at the smaller one, new artists and small companies that is also covered in this law, its advantageous to them. The Dutch government should set a ceiling for these tax exemption so if it will be a fair law.

TwoPenneth
http://kopenandkoken.blogspot.com

glambrat posted: 13-05-2009 | 11:14 AM

It disgusts me Bono going round the world telling governments they should give more of their tax money to poor countries in Africa when he pays zilch tax himself.

Al posted: 30-09-2009 | 1:47 AM

Obama would have some weird world government agency (likely controlled by the USA basically) mandate, control, and audit all financial transactions. Why is Obama, like Bush before him, feel the need to dictate to sovereign countries how they must tax and abuse their citizens or companies? Just because the USA wants a "big brother" total tax regime doesn't mean that actual democratic countries might not wish a more fair or other tax policy? Why must every country on earth, even Switzerland and Nederland, bow before Obama and the USA?

ask your question
find the business you need
Discussion Forums

Travel & Transport in the Netherlands

Grote beurt, by blackwater

Legal Problems in the Netherlands

Moving to UK - what happens to my Dutch residence permit, by avocado

Discuss Dutch Culture

What do people of Africa descent think of Zwarte Pete?, by pepe C

Legal Problems in the Netherlands

Consequences of not registering with the gemeente?, by wesley-nl

Netherlands Soapbox

Random Thought of the Day, by wesley-nl

participate in the forums

Inside Expatica
Healthcare in the Netherlands

Healthcare in the Netherlands

Here’s a current guide to health insurance, doctors, dentists and pharmacies.

Dutch immigration and residency regulations

Dutch immigration and residency regulations

Lost in the Dutch immigration system? Look no further than this guide compiled for our Survival Guide 2009.

The Netherlands at a glance

The Netherlands at a glance

Some basic facts and figures about living and working in the Netherlands.

Giving birth in the Netherlands

Giving birth in the Netherlands

The challenges and benefits of the maternity system in the Netherlands and how it differs to other countries.