Friday 21 February 2020

Dutch agree new tax deal with Malawi, aim to stop tax avoidance

Lilianne PloumenThe Netherlands is hoping to stop multinationals using agreements with the Dutch tax office to avoid paying tax in developing countries by signing 23 new treaties with African states, the Volkskrant says on Monday.

The treaties will allow African countries to make claims against companies which try to shift profits via the Netherlands for tax purposes or which only have a letterbox company in the country.

The first treaty was signed with Malawi on Sunday. ‘It is extremely important that the initiative remains with the developing country,’ aid minister Lilianne Ploumen is quoted as saying.

Malawi tore up a tax treaty with the Netherlands in 2013 because it was being used to avoid taxation, the Volkskrant says.

Ploumen said the Dutch government does not recognise claims that the Netherlands is a tax haven but said the country was well-placed to take concrete steps in the absence of a global approach.

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