American companies say Dutch business climate less attractive

THE HAGUE, May 21 (Xinhua) -- American companies increasingly choose other country than the Netherlands when they settle in Europe because the Dutch business climate is less competitive, Dutch daily AD reported on Monday citing the American Chamber of Commerce in the Netherlands (AmCham).

"There is indeed some concern," said Patrick Mikkelsen, director of AmCham. "At first, the Netherlands was almost automatically the destination for American companies, but that is no longer the case. France, Germany, the United Kingdom, Ireland and Switzerland, for example."

American investments in the Netherlands fell to 68 [projects] in 2017, down from 88 in 2016 and 75 in 2015, according to figures from the Netherlands Foreign Investment Agency (NFIA).

For the AmCham, the rate of profit tax in the Netherlands is not competitive compared to some other countries, for example Britain. The Dutch government pledged in last October to gradually reduce the rates of corporate income tax from 20 percent [for income no more than 200,000 euros] and 25 percent [more than 200,000 euros] to 16 percent and 21 percent as of 2021. The AmCham finds this reduction not enough.

American companies also wish to see the Netherlands abandon the tightening of the so-called "30 percent ruling" expat tax advantage.

Under the 30 percent ruling, Dutch employers can grant a part of the wages, up to 30 percent, tax-free for eight years to skilled foreign workers when the necessary conditions are met. The Dutch government now plans to cut duration of this scheme to five years. Tens of thousands of angered expats working in the country has signed petition criticizing the move.

"The Netherlands is still an attractive country, with a highly educated population and a good infrastructure. But we do want to send a signal," Mikkelsen was quoted as saying. Enditem