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VAT, employment taxes and regulatory fines are hard to avoid paying in the EU, even if corporate profit taxes get moved around a bit.
by spacebanana7 3y ago
VAT, employment taxes and regulatory fines are hard to avoid paying in the EU, even if corporate profit taxes get moved around a bit.
- Fnoord 3y ago"moved around a bit" well, the amount which gets moved around is enormous. I don't know how its done now (I do know its still being done), but the way it was done was it was getting moved to The Netherlands to Ireland to The Netherlands. There's even a Dutch term for such a company: brievenbusfirma, and the location knows for them residing: Amsterdam Zuidas. So we get the curious situation where Ikea is a Dutch company. You're crying wolf about "disproportionality high taxes and compliance costs" but these examples of yours are drops in a bucket compared to the tax evasion severity.
- spacebanana7 3y agoVAT is the largest tax most software companies pay and the one most difficult to avoid. EU VAT rates are some of the highest in the world. Corporation tax may be avoided but that's true of every geography so doesn't affect the comparison of EU vs non-EU. About compliance costs - the majority of >$1B tech fines come out of the EU.