The Dutch Prime Minister has ushered in a tax cut that will directly affect Unilever, among other UK-based firms, according to a report published by Reuters.
Mark Rutte’s decision to scrap the 15 percent dividend withholding tax has been met with vocal protests, forcing the Dutch PM to defend the cut in Parliament twice in the space of a week.
However, Rutte claimed that the tax was designed to make the country more attractive to large firms, who employ around 40 percent of the Dutch working population. Unilever said of the tax cut that it ‘welcomed measures that improve the business climate’ in any country in which it operates.
The dividend withholding tax has been widely cited as one of the main reasons that companies such as Unilever and Shell retain a dual-nationality structure. With Unilever’s dual-entity under review in the wake of Brexit, could it now be swayed to consolidate operations in the Netherlands?