Why tax haven Netherlands says yes to the G7 accord

The Netherlands wants to introduce the new G7 agreement on international income tax ‘unabridged’. No exceptions for certain companies. A remarkably rigorous approach for a country still known as a tax haven. Where it‘s going to me from?

For a

long time, governmental policy has provided favourable tax rules in the Netherlands for large companies. So favourably, the Netherlands was already called a tax haven by President Barack Obama in 2009, similar to countries such as Bermuda and the Cayman Islands.

That time seems to be coming to an end. Demissionary Secretary of State for Finance Hans Vijlbrief announced today in a letter to the Chamber that the Netherlands would like to participate in the new G7 agreement.

However, he says in Nieuwsuur. โ€œIt’s a chord on the outline. These are now being elaborated by the OECD. In the coming months, it will go along the G20, and then it‘s going to Europe.โ€

Tax havens are the dark side

โ€œEveryone has to pay taxes, including big companies,โ€ says Vijlbrief. โ€œIt’s really bad for tax morals in this country when people open the newspapers every day and read about a big company that doesn‘t pay taxes.โ€

In addition, the Netherlands suffered a bad reputation in Brussels, says Vijlbrief. โ€œRightfully or wrongly, but we had that reputation.โ€

Nevertheless, the Netherlands pursued a policy for years where that reputation of tax haven came from. So what’s the reason to want to get rid of that now?

โ€œTax havens are the dark side,โ€ says Vijlbrief. โ€œYou don‘t want to belong to that.โ€

Another advantage, according to Vijlbrief, is that the new agreement โ€œgets more moneyโ€. How much that is exactly he can’t say yet, but he expects the effect on the treasury โ€œat least plusโ€.

No fear of leaving companies

File Letter is not afraid that large companies are moving away, as he believes that the new rate is feasible for most companies.

According to Vijlbrief, the fact that large companies will pay more taxes due to the agreement is not bad news. โ€œEveryone has to pay taxes neatly. If they don‘t pay taxes, someone else pays more.โ€

The demissionary secretary of state sees another stumbling block at the point of digitax, a tax on major tech companies. America wants to get rid of this, in the face of the new agreement. Europe is in favour of it.

โ€œThat’s exactly the elaboration we have yet to make.โ€