No. 16
Summer 2002
Page 3
IN THIS ISSUE
1. Trend: Centralizing European activities
2. Outsourcing of Business activities
3. Low transportation costs make Netherlands attractive location in Continental Western Europe.
4. Dutch Corporate income tax reduced to 29% and 34.5% respectively
5. Ministry of Justice speeds up procedure for Dutch legal entity 'BV' or 'NV'
6. Hong Kong and the Netherlands sign Technology MOU
Low transportation costs make Netherlands attractive location in Continental Western Europe.
 
Accounting and consulting firm KPMG has done a survey which compared the requisite costs for the set up of a company. Start-up costs as well as operational costs were considered for a period of ten years. Countries included in the survey were: US, Japan, Canada, UK, Austria, France, Italy, Germany and the Netherlands. On average, the Netherlands scored better than neighbouring countries, Germany and France as well as Austria. Especially worth mentioning in the conclusion of the survey is the fact that the Netherlands has the lowest transportation costs in the world. Within the Netherlands itself, the northern city of Groningen has the lowest cost-level.
Although the freedom to choose a location increased dramatically in recent years, many business processes have also felt the necessity to do so greater than before. Cost-level is an important factor in the decision making process, including the ability and flexibility of a location choice to provide the necessary resources in a timely manner. This in turn helps companies to provide their customers with the required service levels in time. This in particular is important for those Chinese companies that are extending the reach of their sales and marketing network. Logistics is a very important part of that and this makes transportation costs especially of major importance when making a location decision for e.g. a logistics- or a service- or RMA- operation.
 
Dutch Corporate income tax reduced to 29% and 34.5% respectively
 
Per January first 2002 the applicable corporate income tax rate for both Dutch resident corporations as well as Dutch permanent establishments is 29% for the first bracket of taxable profits up to EUR 22,689 and 34.5% for taxable profits higher than that amount. These percentages are applicable for all companies and permanent establishments, including those of Chinese companies. The previous percentages where 30% and 35%.