“Companies Silicon Valley send Rutte fire letter about tax environment ‘- NU.nl

The companies fear that the Netherlands because of the approach of tax avoidance is less attractive to international companies for US investors, writes Het Financieele Dagblad ( FD ) on Monday.

The newspaper quotes a letter sent in May (pdf) prepared by tax executives from tech companies like Apple, Google and Cisco Systems.

The letter advises the so-called Silicon Valley Tax Directors Group (SVTDG) the Prime Minister on how to keep Netherlands fiscally attractive for multinationals. The letter follows a visit by Rutte to Silicon Valley earlier this year.

if the companies have fewer opportunities to make arrangements with the tax authorities, then this will negatively affect existing and future investments in the United States.

The tax directors, according to the FD satisfied with the accessibility of the tax authorities and the ability to close ‘advance tax rulings. These are specific agreements on the tax must pay the multinationals in the Netherlands. Therefore, the companies in advance certainty.

European Commission

The European Commission will examine such agreements to find out whether the unlawful State aid is that other companies penalized. For example, the commission ruled that the Netherlands earlier in the error would have gone with agreements with coffee chain Starbucks. The Netherlands is appealed.

According to the authors of the letter of the European Commission’s approach creates uncertainty. They are therefore pleased that the Netherlands against the judgment of the committee appealed.

Wiebe

Secretary of State Eric Wiebes (Finance) is responsible for the tax climate in the Netherlands. Through a spokesman, he announced that the government participates in the measures drawn up by the European Commission to tackle tax avoidance and evasion, but he also wants to look at the same time to maintain an attractive business climate.

On Budget Day comes with a letter in which he Wiebes deeper here into going. The Minister will not comment specifically on the letter from the US tech companies, said the spokesman.

Royalties

Netherlands can expect criticism because of the lack of withholding tax on interest and royalties. Companies would therefore be no load transfer their income to tax havens. The European Commission is currently proposing the tax treatment of interest and royalties.

The tech companies insist there precisely that the Netherlands is attractive. Like the exemption from tax on the profits elsewhere making subsidiaries.

They also recommend reducing the Dutch government at the rate of income tax from 25 percent to well below 20 percent. In this way the Netherlands can in this area continue to compete with the United Kingdom, Switzerland and Ireland

By:. NU.nl