TaxCorporate TaxObama proposal angers low-tax countries

Obama proposal angers low-tax countries

Several nations, including the Netherlands, say they have transparent policies

Several low-tax nations highlighted by Obama in his proposed crackdown on tax
avoidance by US multinationals say they are offended by the US president’s
stance.

‘We’re not happy,’ said Jan Kees de Jager, the Netherlands’ finance
secretary, in the Financial
Times
. ‘We have a very transparent policy and we’ll work with the US. I
expect there’ll be a clarification [by the US administration] and we’ll not end
up on lists like this in future, between Bermuda and Ireland.’

The Netherlands has a corporation tax rate of 25.5% on average by world
standards. The tax rate is not used as the main enticement for foreign firms.
But it has no taxes on capital gains and low taxes on dividends, making it an
attractive place to domicile a subsidiary holding company.

The Cayman islands warned of the dangerous consequences of the proposed
changes, including inefficiencies in international trade.

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

1m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

2m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

4m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

4m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

5m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

8m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

8m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

8m Alia Shoaib, Reporter