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"Netflix avoids tax by diverting profits through the Netherlands"

2020-01-15T16:59:35.302Z

In 2018, Netflix channeled $ 430 million (more than 385 million euros) of profit through, among other things, the Netherlands to tax havens in order to pay less, according to research think tank Tax Watch UK on the basis of its own research.



In 2018, Netflix channeled $ 430 million (more than 385 million euros) of profit through, among other things, the Netherlands to tax havens in order to pay less, according to research think tank Tax Watch UK on the basis of its own research.

The company's worldwide profit in that year amounted to 1.2 billion dollars.

In the United Kingdom there are eighteen production companies of the company who could also claim a tax benefit for TV makers. Although the financial data of those companies are not public, Netflix would receive double tax benefits in this way, according to Tax Watch UK.

According to the think tank, the corporate structure of Netflix, which enables the company to divert profits, is comparable to that of other multinationals in the digital sector. Here the income is not collected in the consumer's country, but comes from a foreign holding company. From that holding, the profit is then transferred to a tax haven.

For Netflix, one of the holding companies is in the Netherlands, where, according to Tax Watch UK, the money of British customers goes to. In 2017, however, the company paid 0 percent tax in the Netherlands and the profit was transferred to Brazil.

At the end of 2019, rumors were launched about a tax avoidance investigation by Netflix in Italy.

Source: nunl

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