Toespraak voor Chileens bedrijfsleven

Toespraak | 05-04-2012

Belastingverdrag biedt ondernemers kansen

Ladies and gentlemen,

I am delighted to be here in your beautiful country.
This meeting gives representatives of Chilean and Dutch business an excellent opportunity to get to know each other better.

As the Dutch State Secretary for Finance, I naturally want to tell you a positive story about my country.
And that’s exactly what I’m going to do, because the Netherlands is a strong European country, with a lot going for it.
But I am also aware that you and I both know that times are hard in Europe.

So I would like to start with a short analysis of the current financial situation in Europe.
In the past two years a few countries – Greece, Ireland, Portugal, Spain and Italy – have found themselves in difficulties. That led to serious unrest on the financial markets, and the crisis was in danger of affecting the other euro countries too.

Some major steps have now been taken to solve the problems in the euro zone and to prevent new problems arising.

The countries of the eurozone have now signed up to tough measures to restore and maintain budgetary discipline.
Countries that fail to stick to the agreements face stiff fines.

The euro countries are all working hard to get their houses in order. Including the countries that are in difficulties.
In these countries, new national governments are taking measures to bring government finances into balance. Ireland is leading the field.
And in Italy, Mario Monti’s government has earned respect with its competence and honesty, not least from the financial markets.

We have also built a firewall in Europe by setting up an emergency fund from which countries in difficulties can borrow, under very strict conditions.
The size of the fund is now under discussion.
The Netherlands has always been in favour of a strong safety net,
and will support a rise in contributions to the fund, as long as the IMF remains involved and support is subject to strict conditions.

The policy of the European Central Bank is also important in tackling the crisis, of course.     

The Netherlands is in a relatively good position.
But there too, a discussion is under way on how to put public finances in order and boost the economy.

There are clear signals that the world economy will start to pick up again in the next few years.
And of course, the Netherlands wants to take full advantage of that.
But at the same time we recognise that 2012 will not be an easy year for us. The storm has yet to die down. 

During a storm, most people’s reflex is to batten down the hatches and wait it out.
But country wisdom would have us believe that it’s better to open the windows wide and let the wind blow through your house.
By keeping everything open, you can weather the storm.

This piece of folklore inspires me to believe that in times like these we should open our doors and windows to the outside world.
Because that will help us contribute as much as possible to the upturn in world trade.

For the Netherlands, trade is essential if we are to recover and our economy is to start growing again.
And Chile too needs a flourishing business sector if its economy is to continue growing as fast as it has for years now.

This is where we can help each other.
I’ll return to this point later.
First I want to tell you something about Dutch businesses in Chile and the business climate in the Netherlands.

There is one company I would like to mention by name.
That is Trespa Chile Limitada – a producer of decorative and insulating cladding for exterior walls.
The panels they make help people in the Netherlands keep their houses warm. Here in Chile they are just right for keeping houses cool.
Why single out Trespa?
Because I know the company at first hand.
Like me, Trespa comes from Weert, a medium-sized town in the south of the Netherlands.
It’s a wonderful experience to meet a successful neighbour from Weert here in Santiago, more than twelve thousand kilometres from home.

Trespa is only one of the many Dutch companies building a successful future here in Chile.
The largest Dutch companies like Vopak, Akzo Nobel, TNT, Rabobank and Heineken all have branches in Chile.

This region is one of the fastest growing economies in the world.
The Netherlands has built a reputation in Latin America as an investor and a reliable partner.
We occupy a very respectable fourth place among Chile’s export partners.

The Dutch economy is over twice the size of your neighbour Argentina’s. And the Netherlands has a first class business climate to offer Chilean companies.
That is partly thanks to our prime location between several major rivers and the sea.
It has made the Netherlands not only a beautiful and prosperous country, but also a first-rate springboard from which to do business with the rest of Europe.

Our infrastructure is among the best in Europe.
The Port of Rotterdam is the gateway to Europe.
Amsterdam Schiphol Airport connects the Netherlands with the whole world.
We are leaders in logistics, distributing goods to and from Europe by road, rail and inland waterway through a smart, closely-knit network.
The whole system is geared to speed and efficiency.
We even carry out inspections at full speed.
Last month I opened the fastest container scanner in the world.
It is now being used by the customs authorities in the Port of Rotterdam to inspect containers on moving freight trains.
The Dutch really don’t like delays.

In Chile too, with its many harbours and goods in transit to neighbouring countries, logistics are very important.
And here too, speed and efficiency are crucial.
This is an area in which both the Netherlands and Chile could benefit from exchanging experience. In the private sector as well as in the public sector.

The Netherlands is also well-known in international business circles for its attractive tax climate.
There are two reasons for that.
First, our tax rates are reasonable, and second, we provide certainty about the tax consequences. 

The authoritative World Economic Forum puts the Netherlands in seventh place in its Global Competitiveness Report.
And just about every other report you read says that the Dutch tax climate is better than average for Europe.
In ‘Paying Taxes 2012’, which was recently published by the World Bank and PricewaterhouseCoopers, we score well in the European benchmark.

Our corporation tax rates are competitive, at 25%, and only 20% over the first 200,000 euros.
And we only charge 5% over profits from innovative activities.

We are ahead of the French, the Germans and the Swedes.
And we are a nose length ahead of the United Kingdom.
Corporate income tax in the Netherlands is a full per cent lower than in the UK.

I am aware that the debate on corporate income tax rates is in full swing.
I’m very interested in it.
Here too, we can learn from each other.

But the Netherlands is attractive for other reasons too.
The private sector wants clarity, certainty and continuity.
We can guarantee all three with our extensive network of tax treaties. Companies do not have to worry about double taxation, overly high tariffs or endless bickering.

Chile was the first South American country to become a member of the OECD, in 2010.
That was quite an achievement, and a major indicator of its promising economic prospects.
Chile is the leader in this region.

The Netherlands and Chile have no tax treaty yet.
The Netherlands has treaties with every other OECD country in the world, and Chile is the only exception.

Chile and the Netherlands already do a lot of business.
Our two countries could mean a great deal to each other.
And we both benefit from economic growth.
So my message here in Chile is: let’s not keep our doors and windows locked any longer.
Let’s throw them open and explore how we could move closer on taxation.

This morning I had talks about this with my colleague, Julio Dittborn.
I was pleased to see that we are on the same wavelength. We have agreed to start negotiations on a tax treaty very soon.

Not a treaty that only benefits the Netherlands.
Or a treaty that only benefits Chile.
But a tax treaty that will help both Chile and the Netherlands to grow and to spread their wings as far as they will go.

Thank you.