'The Netherlands needs to do more if it wants to change its image of a tax haven'
If the Netherlands wants to change its reputation as a tax haven, it must do more according to Professor of Tax Law Jan van de Streek on American news site Bloomberg.
The Netherlands has one of the European Union’s lowest corporate tax rates and this has confirmed its reputation of a tax haven. The country’s corporate tax rate is 25% for profits of more than 200,000 euros.
The Dutch government is trying to change this image by, among other things, introducing a source tax on royalties. But the question remains if this will be enough. If the Netherlands is serious about changing its tax system, it will have to do more says Van de Streek. For example, there should be a source tax for dividends, one of the biggest flows of money out of the country; the deduction options for companies should be cut; and negotiations need to be held on certain bilateral tax agreements.