The Netherlands and Ireland, with their preferential tax rates, have become a kind of tax havens within the European Union, despite the fact that politicians in almost all EU countries and the eurozone endlessly insist on intensifying the fight against tax evaders, Finmarket reports. As Thomas Eigenthaler, chairman of the German tax office, said in an interview with The German Wave, the Netherlands and Ireland, with their tax models, are damaging other EU members. "And often they also serve as trans-shipment points on the way to money in such genuine tax havens as the Netherlands Antilles," he added.
In particular, the Netherlands has become the tax framework for large German firms and concerns that open branches in the Netherlands and even win twice. Firstly, the Dutch branch, which enjoys a preferential tax rate, receives money for granting customers licenses and patents. Secondly, the group's divisions located in Germany receive the right to use the relevant licenses and patents from the Dutch branch and pay precisely with it. They deduct these expenses from their tax base. Such practice, points out professor of Mannheim University, economist Christoph Spengel, reduces in Germany concern allocations to both the federal and local budgets. According to K. Spengel, in the Netherlands the tax rate on profit from licensing is only 5% compared to 25% for ordinary profit.
More information here -https://en.wikipedia.org/wiki/Tax_haven
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