MPs have reacted indignantly to the tax benefit that tech company Uber has obtained by moving his intellectual property from Bermuda to the Netherlands. MP Eppo Bruins of government party ChristenUnie has, according to sources at the FD, asked State Secretary Menno Snel of Finance about the deduction of € 5,5 billion for Dutch profit tax.
Uber brought its intellectual property, such as its trademark right, to the Netherlands in March because the European Union is making it increasingly difficult for companies to do business from fiscal free ports such as Bermuda. The Netherlands is also taking measures against tax avoidance. For example, from 2020, the Cabinet will introduce a withholding tax on interest and royalties that are paid to countries that have little or no profit tax.
Uber makes a loss, no benefits.
Uber has been on a loss so far. It can only cash in on its Dutch tax deduction once it makes a profit. This does not have to be in the Netherlands, but in countries outside the United States in which the taxi mediation service operates. Activities outside the US fall under Uber International BV in Amsterdam.
Among other things, Bruins wants to know whether the Tax and Customs Administration has given the American transport company certainty in advance about the amount of the deductible item, in a so-called ruling. When asked, the service does not want to confirm or deny that such an agreement has been made, because the tax authorities cannot say anything about individual taxpayers. However, it is almost certain that Uber has consulted with the Tax Authorities, otherwise the company would not be allowed to record the future tax benefit of € 5,5 billion in its books.
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