Dutch tax rules could be a boon for Barclays/ABN Amro
Favourable Dutch tax rules could benefit combined Barclays/ABN Amro
Favourable Dutch tax rules could benefit combined Barclays/ABN Amro
Barclays
and ABN
Amro could benefit from some tax savings if the group is
headquartered in Holland, thanks to a combination of Dutch tax rules and
increasing profits from emerging markets.
If a combined group set up its head office in Holland, it could potentially
benefit from a lower tax bill, reports the FT .
The combined group’s growth in emerging markets, where corporation tax rates
tend to be lower than in Holland, would effectively make the group’s tax bill
lower.
Dutch-based companies can pay corporation tax in the localities where the
profits are made. UK companies pay UK corporation tax on profits made abroad.
‘The tax system is very flexible [in Holland] and the Dutch have attracted a
lot of holding companies to locate there because of these advantages,’
BDO
Stoy Hayward tax partner Stephen Herring told the paper.
A merger would be unlikely to affect the group’s UK tax bill, advisers have
suggested.
Further reading:
No tax changes if Barclays seals ABN Amro
deal
HSBC suffers $11bn impairment blow
Tories pledge to cut corporation tax