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Even with these baby steps, I like to see that the EU is unifying its corporate tax code. Of course, we do not need to worry about Ireland, Great Britain alread
by allendoerfer 10y ago
Even with these baby steps, I like to see that the EU is unifying its corporate tax code. Of course, we do not need to worry about Ireland, Great Britain already made sure their position as English entrance to the EU will stay strong regardless of tax-breaks.
The Netherlands are naughty, too, due to a strange coincidence Ikea Germany has to pay fees of exactly its profits to Ikea Netherlands each year. I think the bigger countries should use their power to end this ruthlessly, since in the end also the smaller countries would benefit if the race to the bottom stops.
- jakozaur 10y agoJust to be fair: 1. Netherlands profit tax rate is 20%-25%, where Germany: 30-33%. Companies, may take advantage of those difference, but it less obvious evasion than paying 0.005% rate in some tax heaven. 2. Ikea Netherlands has several offices and a lot of employees in Netherlands. They likely provide some services to Ikea Germany. 3. Licensing cost, may have profit component. E.g. I can sell you the franchise for restaurant which takes base cost + some % of your profits. There are far more obvious tax loopholes that should be closed first, before worrying about taxation shifting between developed countries which taxes on roughly same scale.
- allendoerfer 10y ago> 1. Netherlands profit tax rate is 20%-25% Not for foundations [0]. This is not about some procentual differences, it is a big loophole in the Dutch tax code, Ikea benefits from. https://en.wikipedia.org/wiki/Stichting_INGKA_Foundation https://en.wikipedia.org/wiki/Stichting_INGKA_Foundation