This is contribution number 18 by KPMG Meijburg & Co regarding substantial boost to the Dutch ocean shipping industry.
The competitive position of the Dutch ocean shipping industry is given a substantial boost, as cabinet and parliament have agreed on a new policy regarding the shipping industry.
Firstly, shipowners can henceforth determine their fiscal profit on the basis of the ship's tonnage. This measure will remove the incentive for Dutch companies to set up foreign branches or move their entire business abroad for fiscal reasons. In addition, it will make the Netherlands more attractive as a business location for foreign shipping companies.
A second alleviating measure for the shipowners is that the 19 percent reduction on wage tax and national insurance premiums payable, a benefit already in existence, will be increased to 38 percent. In political circles it is expected that the two measures will cost the government more than 100 million guilders per annum.
Major Dutch shipowners have concluded that in the new situation it will hardly be worthwhile for a Dutch shipowner to move to 'flag-of-convenience countries' such as Panama, Liberia or Cyprus.
This message is most likely to be relevant for shipbuilders, shipowners and all those involved in the ocean shipping industry.
Further information can be obtained from mr Alfred GM Groenen, MCL, KPMG Meijburg & Co, Amsterdam (Netherlands); fax 31 (20) 656 1247
Keywords: Netherlands / Dutch / KPMG Meijburg & Co / inward investments / MNE / ship / shipping industry / wage tax / national insurance / social security
Note: The content of this contribution is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
