grandad wrote:
What is the equivalent tax rate in these other countries and why is ours higher? If our tax rates were at the same levels as other countries, there would be no gain in transferring profits.
Rate
The 2013 Dutch corporate tax rate is applied at 20% for the taxable amount up to and including EUR 200,000. For the excess taxable amount the rate is 25%.
Exemptions
Certain items of income are exempt from Dutch corporate tax. The most important items of income that are exempt are:
capital gains and dividends derived from qualifying subsidiaries ("participation exemption");
income attributable to a foreign business enterprise ("permanent establishment").
Participation exemption
Capital gains and dividends derived from a qualifying subsidiary are fully exempt from corporate tax in the Netherlands ("participation exemption"). A subsidiary qualifies for the Dutch participation exemption when:
the subsidiary is an active company; and
the Dutch parent company holds an interest of at least 5% in such company.
Foreign Branch
Income received by a Dutch company from a foreign branch is exempt from Dutch corporate tax provided such branch is a permanent establishment or representative.[