Oil giant Royal Dutch Shell is about to leave The Hague for the UK. Soon the relocation of the company’s headquarters led to a bombshell effect in the Netherlands.
Royal Dutch Shell has had an iconic presence in the Netherlands for more than a century, which makes the oil giant’s intention to move its headquarters to the United Kingdom especially painful for the Dutch.
The Anglo-Dutch group made it clear in a press release that it would like to simplify its structure and align its tax residence with the country in which it is registered. This is the saying in the UK. There, too, he will now set up his headquarters.
$400 million exit tax from the state?
The Dutch government said it was unpleasantly surprised and deeply regretted this decision. Especially since the company is no longer called “Royal Dutch Shell”, but just “Shell”, depriving the country of one of its most beautiful jewels.
Thus follows Hydrocarbon Unilever, another Anglo-Dutch group whose shareholders voted at the end of 2020 for a single parent company based in London, in the post-Brexit context.
For Shell, it’s all about competitiveness. But in truth, the company could benefit from a much lower tax rate across the channel. However, the group will have to pay the Netherlands an exit tax of up to $400 million.
Shell’s decision must now be voted on by shareholders at a general meeting on December 10.
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