Surprise! Netherlands Labeled a 'Tax Haven' by Obama

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In summary, the Netherlands has been labeled as a tax haven by President Obama, which surprised the Dutch government. However, it is expected that this labeling will be corrected soon. The conversation then shifts to questioning why there are so many taxes in the Netherlands. The response is that someone has to pay them, but the benefits include having foreign companies establish their European headquarters in the Netherlands due to lower taxes for both the company and their employees. Ireland is also mentioned as another country with similar tax setups, but has faced criticism from the EU for allowing certain tax rules.
  • #1
jaap de vries
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Who would have though that our "socialist" country would be labeled as such.

http://crossroadsmag.eu/2009/05/netherlands-is-tax-haven-obama-says-dutch-government-astonished-at-tax-haven-branding/

I am sure that this will be rectified soon.
 
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  • #2
Then why do we pay so many taxes?
If I read that article correctly I can stay where I am but pay less, if I officially emigrate to the US and set up a business which employs me in the Netherlands?
 
  • #3
CompuChip said:
Then why do we pay so many taxes?
Someone has to!
The Netherlands benefits because although foreign companies pay less tax there - all their workers do. Many US companies have their European headquarters in the Netherlands because of this.

There used to be some good deals for foreign workers as well - you could opt to just pay a flat rate (25% IIRC) tax for the first 10years - which is why non-profit organisations like ESA are there. And of course it's a great country to live and work in.

There's a similar setup in Ireland although it also promoted itself as a cheap labor market which is a bit short sighter.
Ireland has been in trouble with the EU for allowing some interesting tax rules. Microsoft, Dell, Google and Amazon are all based in Ireland and somehow manage to only make a profit there - while making a loss in all other European countries?
 

1. What is a "tax haven" and why is it significant that the Netherlands has been labeled as one by Obama?

A tax haven is a country or region that offers favorable tax laws and regulations in order to attract foreign businesses and individuals to invest and hold their money. It is significant that the Netherlands has been labeled as a tax haven by Obama because it means that the country is seen as having a low tax jurisdiction and may attract businesses and individuals looking to avoid paying higher taxes in their own countries.

2. How did the Netherlands become labeled as a tax haven?

The Netherlands has been labeled as a tax haven due to its favorable tax laws and regulations, particularly its tax treaties with other countries and its low corporate tax rate of 25%. Additionally, the country has a system of tax rulings that allows companies to negotiate tax deals with the Dutch government, often resulting in lower tax rates than in their home countries.

3. What impact does the Netherlands being labeled as a tax haven have on other countries?

The Netherlands being labeled as a tax haven can have a negative impact on other countries as it may lead to companies and individuals shifting their profits and assets to the Netherlands in order to avoid paying higher taxes in their own countries. This can result in a loss of tax revenue for these countries and can also create an uneven playing field for businesses that are not able to take advantage of the same tax benefits.

4. How has the Dutch government responded to being labeled as a tax haven?

The Dutch government has denied being a tax haven and has defended its tax system, stating that it is in line with international standards. However, they have also announced plans to make changes to their tax laws and increase transparency in order to prevent abuse of the system and address concerns raised by other countries.

5. What are the potential consequences for the Netherlands if it is officially labeled as a tax haven?

If the Netherlands is officially labeled as a tax haven by international organizations or other countries, it could face consequences such as sanctions or restrictions on trade and investments. It could also damage the country's reputation and lead to a loss of foreign investments and businesses. Additionally, the Dutch government may face pressure to make significant changes to its tax system in order to avoid being labeled as a tax haven.

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