Netherlands Foreign Investment Agency (NFIA)

Toespraak | 22-03-2010

Ladies and gentlemen,

I have been greatly looking forward to this visit, and especially to today.

Tonight, Hong Kong and the Netherlands will sign the first ever comprehensive double taxation treaty between our two countries.

And it will be a very good treaty. It will be made public tonight. What I already can say:

It is a treaty that will boost investment between the Netherlands and Hong Kong. A treaty that will provide certainty and tax benefits for Hong Kong businesses that are based in the Netherlands or want to open branches there in the future. And vice versa, of course. And it is also a treaty that will strengthen Dutch competitiveness.

In some ways the Netherlands and Hong Kong are very different. For one thing, we are on opposite sides of the world: when it is midnight in the Netherlands, a new day has already started in Hong Kong. And yet, in other ways, Hong Kong and the Netherlands have a great deal in common.

Both are densely populated, highly developed economies. Both are home to a world-class port and a large international airport. Both have well-educated populations. And both have strong links with an important hinterland: the Netherlands with Europe, and Hong Kong with Mainland China.

And we each have something to offer the other.

The Netherlands has plenty to offer international businesses. And, as of today, we have even more to offer businesses from Hong Kong.

Companies from all over the world have chosen to establish branches in the Netherlands. One important factor is our country’s tax climate, which is among the most competitive in the world.

The Dutch corporate income tax rate of 25.5% is relatively low compared with other European countries. Profits generated by qualifying participations in companies are tax-exempt for entities based in the Netherlands.

The Netherlands has no withholding tax on interest or royalties. And the profits from intangibles for which a patent is granted or for which an R&D certificate has been received, is taxed at an effective rate of only 5%.

In addition, the Netherlands has an extensive and competitive treaty network. We have concluded almost 85 DTAs, covering most of the world, including all the major economies. And this network is being extended and improved even as we speak.

Another major benefit of the Netherlands’ tax climate is the accessibility of the Dutch Tax and Customs Administration. Our tax administration is very accessible and can provide certainty in advance with regard to the tax consequences of proposed major investments in the Netherlands. The NTCA understands how important it is, when doing business in the Netherlands, for foreign investors to know in advance what the tax implications of their cross-border investments will be. So the NTCA is very approachable and can provide certainty in advance with regard to the tax implications of proposed major investments in the Netherlands.

The treaty we are signing tonight will save businesses from double taxation.

But most importantly of all, this treaty will help companies achieve success.

So, ladies and gentlemen,

Allow me to propose a toast to the success of all our companies, from Hong Kong and the Netherlands alike.

Thank you.