Obama brands Netherlands as tax haven

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The Dutch government has been branded by US President Barack Obama as one of the world's top three corporate tax havens.

THE NETHERLANDS -- The Dutch Finance Ministry has reacted with astonishment to the list presented by US President Barack Obama on Monday, which names the Netherlands as one of the world's top three corporate tax havens, together with Bermuda and Ireland.

The Dutch embassy in Washington has contacted the American authorities to express its amazement.

A spokesperson said the Finance Ministry is working with its US colleagues to trace the origin of this misunderstanding, and to get it out of the way. The spokesperson added the Netherlands has "a very average tax level".

President Obama Monday announced a plan to combat tax evasion by wealthy Americans who stable their money in tax havens. The president also wants to prevent American multinationals from parking their profits in countries with the most favourable tax regimes.

As long as they keep their earnings overseas, US companies are legally exempt from paying taxes, which only become due when the money is "repatriated" to the United States. The practice is perfectly legal, but the US government considers it harmful to the American economy.

Radio Netherlands / Expatica

1 Comment To This Article

  • arjan posted:

    on 7th May 2009, 10:16:20 - Reply

    Actually once the Dutch Secretary Of Finance contacted the White House through the Embassy, the Obama administration appologized