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The Netherlands Tax Climate
A Dutch member of the European Parliament has opinioned that the Netherlands is a tax haven and that measures should be adopted to reduce the fiscal attractiveness of the country for holding activities. See: http://www.nu.nl/nieuws/2892095/sp-schaft-belastingparadijs-nederland-af-.html
AmCham comment: The Netherlands has known the participation exemption in its corporate taxation since 1918. Under this exemption profits realized and taxable abroad are not subject to tax again in the Netherlands. This gives companies established in the Netherlands with activities in a third country the same level of competitiveness as the local business community in these third countries – a level playing field.
The same applies to the extensive network of tax treaties: tax treaties are concluded in order to avoid double taxation. This is essential for the Dutch competitiveness, and essential in a globalized economy. Without the participation exemption – a measure that is being adopted by more and more countries – there is a risk that head offices will move abroad, which will result in a loss of jobs and tax receipts.
All companies in the Netherlands are taxed for their activities here. This also applies to multinationals that operate worldwide.