Establish optimal tax structures
Worldwide governments are attempting to attract capital or economic activity by offering attractive tax incentives, such as investment incentives or favourable regimes for investment in real estate, the receipt of dividends, royalties or interest by conduit or flow-through companies, etc.
Tax burden reduction
For many years multinational companies, artists, athletes, etc., have been utilising differences in international tax systems to reduce their overall tax burden. Thanks to globalisation, the Internet and e-commerce these benefits are now also within the reach of smaller businesses. However, the rules can be complicated and are constantly changing.
Why is Holland so popular among foreign corporations? There are several reasons. The main reason probably is the existence of bilateral tax treaties with more than a hundred countries and the fact that the Netherlands do not raise tax on outgoing interest and royalties. Other reasons include the central geographical position of the Netherlands, excellent connectivity, a well-educated, multilingual workforce, a favourable tax climate and a stable and reliable jurisdiction. That’s why numerous European, American and Asian companies have already established their offices in the Netherlands.
This means that foreign companies can slash their tax bill significantly by funnelling dividend and interest to their Dutch entities. Please note that therefore there is nothing illegal about using the Netherlands in your international tax structure.
Soliana Belastingadvies BV is experienced in the interpretation and application of double tax treaties and international regulations in the most common jurisdictions in the world. We have years of experience in setting up and assisting international business tax structures.
You can also benefit from these solutions and make use of these tax facilities if you are contemplating the start of new business activities abroad. We can assist you in setting up an optimal international tax structure and calculate your bottom line tax benefit in advance. This way we make sure you will have no surprises.