Changes in taxation and uncertainty surrounding government policies on reducing nitrogen-based pollution may make foreign companies think twice about settling in the Netherlands, Jeroen Nyland said for foreign investment. Resign as a member
Nijiland, who heads Qatar’s Investment Promotion Agency seven years later at the Dutch Foreign Investment Authority (NFIA), said the Netherlands remains a popular destination for businesses, but with the politicization of measures that affect foreign countries in the future. Businesses that have stated that foreign investment may suffer will continue.
Last year, about 305 companies moved to the Netherlands, but foreign investment fell by a quarter and employment fell by 40%. While the coronavirus crisis has contributed to the decline, tax measures and nitrogen emissions issues have also diminished, Nyland said.
The retired commissioner quoted the 2015 Starbucks tax case, which the European Commission accused the Dutch government of giving state support to the chain, but the allegations were later refuted.
Another example of politics that is causing investor tension is the turmoil over the 2017 dividend tax abolition, Nyland said. Intended as a sweetener for Shell and Unilever, it got stuck after fierce political opposition. “It caused a lot of anxiety about the financial part of our business environment,” Nijland told the paper.
Nijland said the deterioration of political and business relations is not usually in Dutch, but is a bit polarized here. “Companies are asking themselves if they are welcome,” he said.
He said the political backlash from corporate tax cuts, the abolition of tax cuts for expatriates, and the GroenLinks draft proposal for “exit fines” for companies leaving the company are also damaging.
Unresolved nitrogen compound pollution, which has paralyzed thousands of construction sites, will probably cause even greater damage to foreign investment, Nyland said. NFIA has counted 140 large projects affected. “People who want to build understand that there are rules, but if you can’t explain what they are, it’s tricky,” he told FD.
Foreign investors can choose a country, said Nyland, who will occupy a position in Qatar in March. “They compare countries and find that things are unpredictable here. Stability is important because these are long-term investment decisions. Appropriate if part of the business environment is unstable. No comparison can be made.
For now, Brexit is promoting a number of companies that may be trying to settle in the country, Nyland said. “Last year, the Netherlands welcomed 80 companies from the UK, just like the previous year. The Brexit project in the pipeline surged from 425 last year to 550 this year.
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Politics and business make uneasy companions and warn of leaving the NFIA chief
Source link Politics and business make uneasy companions and warn of leaving the NFIA chief