US Tech Giants Warn the Netherlands over Changing Its Tax Regime

US Tech Giants Warn the Netherlands over Changing Its Tax Regime
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US Tech Giants Warn the Netherlands over Changing Its Tax Regime
September 1st, 2016
The Silicon Valley Tax Directors Group (SVTDG), which unties 85 biggest US technology companies, have sent a letter addressed to the Dutch prime minister, State Secretary of Finance and to the ministers of Finance, Economic Affairs and Trade, warning the country not to change its favorable tax regime and to resist the pressure from the EU.
Background

The Silicon Valley Tax Directors Group (SVTDG), which unties 85 biggest US technology companies, have sent a letter addressed to the Dutch prime minister, State Secretary of Finance and to the ministers of Finance, Economic Affairs and Trade, warning the country not to change its favorable tax regime and to resist the pressure from the EU.

Background

The SVTDG is composed of representatives from 85 leading high-technology companies such as Google, Facebook, Apple, Amazon, Tesla Motors, Uber, Yahoo, Oracle, SAP and Accenture. The purpose of the SVTDG is to promote sound, long-term tax policies that support competitiveness. "Members of this group believe that tax policies should enhance opportunities for productivity growth by encouraging and rewarding enterprises that develop goods and services that meet international market standards," the organization informed in a letter.

The letter, which has been sent to the Dutch Ministers in May, has now became available in the local media.

Attractive Features

The SVTDG noted that US companies are the source of almost five percent of the Netherlands GDP and that specific Dutch Tax Regime have been important driver to attract US investors to the Netherlands in the past. The elimination of one or more of the specific features of the Netherlands business tax regime will adversely impact both existing US investments as well as the flow of new US investments into the Netherlands, the organization said.

Concerns

The SVTDG is very concerned about the impact of the introduction of the UK Diverted Profits Tax (“UK DPT”) on Principal Companies located in the Netherlands. "The UK DPT enables HMRC to re-characterize the supply chain of a Dutch based principal company and to re-compute the UK profits and impose a 25% tax on such “diverted” profits," the organization noted.

State Aid Investigations

The organization also pointed out the recent state aid investigations, which had negative impact on stability of the tax environment. The SVTDG said it supports the appeal of the Dutch Government against  the EC decision in the Starbucks case. The organization also mentioned EU's proposal for public report of data, which "will result in reputational damages for companies as a result of an incorrect interpretation of such data and a general lack of understanding of complex tax laws."

Sources: The Letter, Financieele Dagblad (Dutch), Dutch News, Financial Times

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US Tech Giants Warn the Netherlands over Changing Its Tax Regime
; posted on
September 1st, 2016
The Silicon Valley Tax Directors Group (SVTDG), which unties 85 biggest US technology companies, have sent a letter addressed to the Dutch prime minister, State Secretary of Finance and to the ministers of Finance, Economic Affairs and Trade, warning the country not to change its favorable tax regime and to resist the pressure from the EU.
Background
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