The Netherlands: Worlds Biggest Tax Haven?
Рет қаралды 470,263
4 жыл бұрынThis video was made possible by our Patreon community! ❤️
See new videos early, participate in exclusive Q&As, and more!
➡️ / economicsexplained
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀
The Netherlands, a fine country of flowers, windmills, and loose regulations around the finer things in life. This country is in many ways like a lot of very developed European economies we have explored earlier on the channel, very high living standards, good social mobility a strong economy and healthy inequality but the Netherlands hides a bit of a secret behind its lovely flowerful smile, it is one of the largest tax havens in the world.
But how does this make any sense? The Netherlands has a high-income tax rate of over 50% for top earners and a corporate tax rate of 25%. And there are not even particularly strict laws around things like banking privacy (like there are in countries like Switzerland) ... so if all of this is making the Netherlands sound like a pretty terrible tax haven all in all, why is it so popular?
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀
📚 Want to learn more about the economy of the Netherlands? We recommend reading "Tulipomania: The Story of the World's Most Coveted Flower & the Extraordinary Passions It Aroused", by Mike Dash 👉 amzn.to/2YiHGX9 (as an Amazon Associate, we earn from qualifying purchases)
Enjoyed the video? Comment below! 💬
⭑ Subscribe to Economics Explained 👉 bit.ly/sub2ee
⭑ Enjoyed? Hit the like button! 👍
Q&A Streams on EEII (2nd channel) → / @economicsisepic
✉️ Business Enquiries → hello@economicsexplained.com
Follow EE on social media:
Twitter 🐦 → / economicsex
Facebook → / economicsex
Instagram → / economicsex. .
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀
#Netherlands #TaxHaven #Economics
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀
Sources & Citations -
Loomis, S.C., 2011. The double Irish sandwich: Reforming overseas tax havens
Thorne, D., 2013. The Double Irish and Dutch Sandwich tax strategies: Could a general anti-avoidance rule counteract the problems caused by the utilization of these structures?.
Brothers, J.P., 2014. From the Double Irish to the Bermuda Triangle. Tax Analysts
Van Dijk, M., Weyzig, F., and Murphy, R., 2006. The Netherlands: a tax haven?
Weyzig, F., 2013. Tax treaty shopping: structural determinants of Foreign Direct Investment routed through the Netherlands. International Tax and Public Finance
Gordon, R.A., 1981. Tax havens and their use by United States taxpayers-An overview. Intertax
Double Irish Dutch Sandwhich: archive.nytimes.com/www.nytimes.com/interactive/2012/04/28/business/Double-Irish-With-A-Dutch-Sandwich.html
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀
EE Fan Exclusive Offer:
Sign-up for Acorns! 👉 www.acorns.com/ee (after registration, Acorns will deposit $5 in your account to help you get started with investing!)
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀
ECONOMICS EXPLAINED IS MADE POSSIBLE BY OUR PATREON COMMUNITY 👊🙏
Support EE by becoming a Patron today! 👉 / economicsexplained
The video you’re watching right now would not exist without the monthly support provided by our generous Patrons:
Morgon Goranson, Andy Potanin, Wicked Pilates, Tadeáš Ursíny, Logan, Angus Clydesdale, Michael G Harding, Hamad AL-Thani, Conrad Reuter, Tom Szuszai, Ryan Katz, Jack Doe, Igor Bazarny, Ronnie Henriksen, Irsal Mashhor, LT Marshall, Zara Armani, Bharath Chandra Sudheer, Dalton Flanagan, Andrew Harrison, Hispanidad, Michael Tan, Michael A. Dunn, Alex Gogan, Mariana Velasque, Bejomi, Sugga Daddy, Matthew Collinge, Kamar, Kekomod, Edward Flores, Brent Bohlken, Bobby Trusardi, Bryan Alvarez, EmptyMachine, Snuggle Boo Boo ThD, Christmas
@EconomicsExplained 4 жыл бұрын
Thanks for watching EE nation! ❤️ If you enjoyed, please consider supporting the show on Patreon! 😎 See new videos early, participate in exclusive Q&As, and more! ➡️ www.patreon.com/EconomicsExplained
@tank7474 4 жыл бұрын
I have a question: is the Netherlands only positive for not paying intellectual property tax? This would be a fraction of the tax avoidance right?
@willcook403 3 жыл бұрын
What’s the best company to call to get the ‘new’ style of arrangement if the current is being phased out ?
@dailyfrans 3 жыл бұрын
Very interesting, thanks for the video. Please also make a "Economy of The Netherlands" like you make on the other countries, there is so much more to say there
@indraneel5123 Жыл бұрын
panama is the best XD
@Pagan-hn4du 9 ай бұрын
Every country has a mortmain account offshore usa has porto rico...so europes mortmain account is located in the Netherlands?or each country has his own colony 4this? 4example portugal may be azores or madeira...
@homemadesocks 4 жыл бұрын
Thanks ee for teaching me how to dodge taxes for my multinational company
@EconomicsExplained 4 жыл бұрын
Very useful information I am sure
@w.m.e.cantinoobtrader1334 4 жыл бұрын
you wanna move to Oman? 0 income tax, social security tax and capital gains tax and even crypto legal! cheap leaving too here. it is islam country but still liberal and feel better than western ghetto. i can help you with sponsor! pm me
@RBAWintrow 4 жыл бұрын
Better than a ghetto? You make a tempting offer... @General Jims, setting up shell corporations in other countries technically makes you a multinational! :)
@sirtomalot1584 4 жыл бұрын
@PiCABLESKY Taxes are only moral when everyone pays their fair share. If everyone did, these roads would have already been there.
@sirtomalot1584 4 жыл бұрын
@PiCABLESKY Dude, it takes you 3 replies to answer? Go smoke some weed or something. I'm just talking about the morality about paying taxes. Not all the other stuff. We both know the system is rigged I was just saying. If everyone pays taxes it will be a moral thing to do. Ya happy now?
@vianabdullah2837 4 жыл бұрын
4:09 I do appreciate the annexation of Flanders.
@darius2640 4 жыл бұрын
-shut up Flanders, you are part of netherlands now -okili dokili neighborino
@thomasderuiter6584 4 жыл бұрын
Well, we swapped Flanders for Limburg
@nullvoid564 4 жыл бұрын
"Stupid Flanders" - Homer Simpson
@grepukun5557 4 жыл бұрын
Perfectly balanced, as it should be.
@sqocks8254 4 жыл бұрын
*LONG LIVE THE GREATER NETHERLANDS!!*
@koffieboon20 2 жыл бұрын
As a dutch person, I thoroughly enjoyed all the stock footage of Germany in this video
@jiyongjung8495 6 ай бұрын
So funny 😂
@5astelija75 4 жыл бұрын
5:42 that Runescape coin pile earned my like
@EconomicsExplained 4 жыл бұрын
haha well whatever works for you :)
@ModeratelyTrumpet 4 жыл бұрын
We want more RuneScape references!!
@tdoge 4 жыл бұрын
buying gf
@zookiatookya320 4 жыл бұрын
Imagine he explained this in Runescape terms.
@jezusbloodie 4 жыл бұрын
I would really love to see a video on the Dutch East Indies Company, the first megacorperation and the largest company that has ever existed. the economic practises that were first used with them are really interesting, but I don't understand most of it
@righthoekstra 4 жыл бұрын
The company that started the stock market! really interesting.
@raifikarj6698 4 жыл бұрын
Well they controling the gold mine (spice) at that time.
@jezusbloodie 4 жыл бұрын
@@raifikarj6698 not only that, the innovations, like the first stock exchange are still very much influencing if not determining our current economies. And so many other things which I don't fully grasp. The Wikipedia on the Dutch East Indies Company is huuuge and so much from back has been written down, I highly recomend taking a look at it
@niluscvp 4 жыл бұрын
It was the largest but not in the way you would imagine, the 7,5 trilion figure is just the inflation corrected "worth" of the company on the stock market, but only temporaily because of the tulip mania, which was the first bubble and crash on the stock market.
@adharshs3004 4 жыл бұрын
indeed
@EconomicsExplained 4 жыл бұрын
Hi Guys I hope you enjoyed the latest video, as with every video we will be hosting a Q&A session for 1 hour after this video goes live. If you have any questions or comments about the video please just on our live stream available on our second channel here - kzfaq.info/get/bejne/oJ1dmdmomZnMh30.html If you would like to participate in the discussion directly come and join our discord server here - discord.gg/nZuCJRY
@marcoperez3212 4 жыл бұрын
Can you plz make more tax haven vids?
@dumfaded 4 жыл бұрын
My dad used to work with big hedge funds and private equity firms for 20+ years. after he passed away i have heard all the stories of his work life, my dad was really really good at dodging taxes for other people, he used to go to the cayman islands alot and even moved us to saint thomas in the carribean when i was younger,ill tell you rn Netherlands and luxembourg and even ireland arent even close to the scale and level of tax skirting that is going on in the carribean islands.
@M2161 11 ай бұрын
Everyone knows that. Also maybe you should expose your dead father for helping people commit legal fraud
@MattMarshallUK 4 жыл бұрын
Great video, although I think you missed a huge point from your final thoughts... The injustice is that small companies don't have the revenue to benefit from these tax models, meaning new, independent businesses are almost always going to struggle to compete with huge multinationals. The result is bland, carbon copy highstreets with Starbucks on every corner and a lack of diversity of new products and services. For anyone who cares about the subject, I highly recommend the book The Hidden Wealth of Nations by Gabriel Zucman.
@wojak8297 Жыл бұрын
form a 2nd company that leases the office to your business, make your business pay rent to the 2nd company so you dont have profit, writte off that profit in your 2nd business with depreciation expenses, now you have the money in the 2nd business paying no taxes, easy!
@dinsel9691 4 жыл бұрын
Tax Evasion. This is one of the major reasons why you can not just set up a small business and compete with multinational companies.
@FriiInfo 4 жыл бұрын
Right also my main concern.
@mushrifsaidin 4 жыл бұрын
*Tax avoidance
@dinsel9691 4 жыл бұрын
@@mushrifsaidin Google the meaning of "evasion".. and the meaning of "avoidance" and tell us the difference, sweetcheeks!!
@cmanboss99 4 жыл бұрын
@@dinsel9691 tax avoidance is when you don't pay taxes but its legal like in this case, tax evasion is when u don't pay taxes but its illegal
@user-nj4rl7cg4b 4 жыл бұрын
It depends on niche. Transnational corporations are good for mass market. But if your goal to meet more exclusive demands those corporations become pretty much useless
@smallpotatoe9487 4 жыл бұрын
Thanks for this video! Waited for this offshore video from a long time. Would definitely love to see more on this topic
@boyan.guitar 3 жыл бұрын
After watching so many of your videos what I love the most about your work is that I feel that you have a good moral compass. I really hope you will inspire a future generation of Economists to develop one like yours too. Very informative and unbiased videos, absolutely love them, thank you! Keep on keeping on!
@iedokpolor8415 4 жыл бұрын
it's always great to see when they give the Nederlands a part of Belgium
@keeswillems4637 4 жыл бұрын
this is an amazingly informative video, I’m Dutch myself and this is by no means common knowledge here but most people interested in politics know this.
@szymonnowak9989 4 жыл бұрын
Last time I was this early, Nauru was still rich
@EconomicsExplained 4 жыл бұрын
ooft
@knockhello2604 4 жыл бұрын
NAAAR-AH-RUUU LOL
@szymonnowak9989 4 жыл бұрын
@@EconomicsExplained Come to think of it, You should make a video about Nauru! It's interesting case study of what a country absolutely shouldn't do
@szymonnowak9989 4 жыл бұрын
It's preety much Venezuela, but with bird poop
@w.m.e.cantinoobtrader1334 4 жыл бұрын
you wanna move to Oman? 0 income tax, social security tax and capital gains tax and even crypto legal! cheap leaving too here. it is islam country but still liberal and feel better than western ghetto. i can help you with sponsor! pm me
@danielhayhurst6539 2 жыл бұрын
I really enjoy all the footage in your videos. Mezmerizing, diverse, and chock full of great info. Thank you!
@karljohanfelsagerjakobsen653 4 жыл бұрын
What about making a video about Denmark. It's a country like norway but without the oil, so you can see how the polecies work without the oil.
@ayizeb9299 4 жыл бұрын
Denmark is exploiting plenty of oil in the north sea.
@karljohanfelsagerjakobsen653 4 жыл бұрын
@@ayizeb9299 but nothing at all compared to norway. Sweden would be fine too, but Denmark is almost the same as norway
@sigi9669 3 жыл бұрын
Touchy subject. The Norwegians found oil in "their" Ocean just after Denmark gave it to them.
@witoldschwenke9492 2 жыл бұрын
@@ayizeb9299 its a tiny amount it barely matters its 0,39% of gdp. Denmark was doing well long before the oil was discovered and the oil only lasted a very short period of time and is now almost gone.
@mariusmatei2946 2 жыл бұрын
@@ayizeb9299 yeah, Denmark has (its) oil, and Netherlands has (its) natural gas; the amount of oil that Denmark is extracting offshore, in the North Sea, barely covers its national needs (but yeah, you are right, Denmark is, indeed, an oil-producing country).
@MrEmlish 4 жыл бұрын
High-quality as usual, . Thank you
@ShaamVM 4 жыл бұрын
G E K O L O N I S E E R D
@Thomatensoep 4 жыл бұрын
Lekker bezig
@stijnhs 4 жыл бұрын
Begint oud te worden...
@knockhello2604 4 жыл бұрын
Confused
@stijnhs 4 жыл бұрын
@@knockhello2604 it's a dutch meme
@Trekfolie 4 жыл бұрын
We are being colonized by other countries that want to use our tax system while we are paying more than is necessary
@Scandiravian 4 жыл бұрын
The animated explanation was great! I mentioned on the MLM video that I had a hard time following the explanation without a visualisation, thank you for adressing that. This might be your best video so far - Keep up the good work! 😃
@manhoosnick 4 жыл бұрын
And after all this when I see my father crying in secret because since Amazon launched in France, his shop sales are down by 90%... how not to be angry.
@jasa_m7990 4 жыл бұрын
Yoir comment saddened me. Read marx lenin mao and badiou and organize! Solidarity!
@manhoosnick 4 жыл бұрын
@@jasa_m7990 Thanks brother but even that isn't the solution, we saw what happened in USSR and China, Private property is the answer but these tech giants have destroyed a lot. Wish me luck and force so I can help my father as he did for me.
@TuddecBMW 4 жыл бұрын
In any situation there are winners and losers. Objectively, most people (consumers) have benefited from Amazon’s services (lower price and convenience) even though some small businesses have suffered. That’s how disruption works I’m afraid.
@manhoosnick 3 жыл бұрын
Thanks a lot guys, it was constructive to read you all.
@a1bells501 3 жыл бұрын
Can’t he sell his products on amazon as well
@grabbers6520 4 жыл бұрын
Thanks for the explanation. I've been wondering how this works for a while but didn't bother to research myself
@isbestlizard 2 жыл бұрын
That was a great video, thanks for making it. Your stock footage sure is a style.
@satoshiaoki 3 жыл бұрын
very informative! Cheers buddy!
@Drrolfski 4 жыл бұрын
Cool, would love to see a video about the main Dutch economy though.
@MrN0nex 4 жыл бұрын
0:31 ehm thats Limburg Germany not the Limburg in the Netherlands... :D
@jezusbloodie 4 жыл бұрын
Yeah, some legitimate map gore in this video. Why does this always keep happening to the Netherlands in educational KZfaq videos?
@themightycat7238 4 жыл бұрын
it got *g e k o l o n i s e e r d*
@AlwaysRM_ 4 жыл бұрын
Well we could try to explain the video makers to stop doing it or we just make it so these places are part of the Netherlands.
@jaroslavzalesak1447 4 жыл бұрын
AlwaysRM_ Then it is only to consider, whitch one from these two options is easier.
@InTimeTraveller 4 жыл бұрын
Holy shit, there's Limburg in Germany! I mean I knew that there's Limburg in Belgium (besides Netherlands obviously), due to it being part of the historical province of Limburg, but what's the connection with the German city that's like 200 km away from the Dutch border?
@abhinavitsmebellamy 4 жыл бұрын
Great video/ explanation. Thanks!!
@EconomicsExplained 4 жыл бұрын
No worries mate :) glad you enjoyed.
@iloveeveryone8611 4 жыл бұрын
I didn’t like your view on economics before, but I’ve grown to truly see all sides of an argument and I have now fallen in love with your content
@merlinlehrling5098 4 жыл бұрын
I love you guys! This video is sooooooooooooooooooo good!!!
@EconomicsExplained 4 жыл бұрын
We love you too
@djVania08 4 жыл бұрын
I wonder if there is any particular Economy books that you`d recommend us to read? Maybe make a short list? Thanks a lot for the content that you do. I really really like it.
@danielsich3362 4 жыл бұрын
Would be great
@Nuganics 4 жыл бұрын
Economics in One Lesson by Henry Hazlitt. Free legal PDF or Audiobook in google. Ask me anything about it.
@David-km2ie 4 жыл бұрын
On macroeconomics, if you have the time, I would recommend to read and compare the major books of the major schools of economic thought. These include e.g. -The general theory of employment interest and money (Keynes) -The road to serfdom (Hayek) -Capitalism and Freedom (Friedman)
@midlander8186 4 жыл бұрын
The content of this video seems much more a product of the study of accounting and law than of economics. I wonder the area of expertise of the creator of Economics Explained.
@CB055 4 жыл бұрын
Capitalism and Freedom - Milton Friedman
@creditbayauto 4 жыл бұрын
Dude your video’s are awesome 👏🏿
@EconomicsExplained 4 жыл бұрын
Thanks man :)
@alexd9656 4 жыл бұрын
thanks for explaining how this works so clearly!
@Bedinsis 4 жыл бұрын
I would like to see the economics of running a refugee camp.
@adonissherlock 4 жыл бұрын
Probably similar to that of a sewage treatment plant
@john10000ish 4 жыл бұрын
Read open borders by Malkin.
@Bedinsis 4 жыл бұрын
@@john10000ish Judging by what aims that book seems to have and the concerns it has I don't think that would be my cup of tea.
@john10000ish 4 жыл бұрын
@@Bedinsis but it's an eye opener, how politics has shifted to one side.
@Bedinsis 4 жыл бұрын
@@john10000ish Well I'm not American for starters, so comments about American politics is not what I primarily am looking for.
@donalwegians2 4 жыл бұрын
Nice video and chances of doing video on Ireland. As Irish man who lived through great recession to now one of fastest growing ecconomy in EU
@Photonblastt 4 жыл бұрын
ayy another good video from one of the best channels :)
@EconomicsExplained 4 жыл бұрын
Thanks for the support mate :)
@my_rights5131 3 жыл бұрын
Very educative, thank you
@petepetersen5418 4 жыл бұрын
25% = Here to see a video about shell corps, tax "minimisation" and economic regulations. 75% = I'm Dutch! I like seeing video's on KZfaq about my country
@XEinstein 4 жыл бұрын
Sure we do! Our country is the best! 😉
@jamesdelrono6353 4 жыл бұрын
Hey could you do the economy of germany through the world wars
@TheMusicalKnokcers 4 жыл бұрын
seems to be a very very difficult topic
@Showmetheevidence- 4 жыл бұрын
TheMusicalKnokcers But would be incredibly interesting
@patrickscholten222 4 жыл бұрын
marchall plan, after that gas, trade and agriculture
@brinjoness3386 4 жыл бұрын
over spend and squander, followed by hyper inflation.
@investstrmmen1352 4 жыл бұрын
Thank you for your videos. You are probably one of the most intelligent youtubers on youtube, and that makes you my new best friend.
@haroldbradford690 4 жыл бұрын
Great video!!!
@conorcrowley6256 4 жыл бұрын
As somebody from Ireland I found looking at how a different countries handle Tax Haven status. Particularly given the face the Netherland seems to have their stuff more together. Also obligatory asking for an Irish video
@Mindforprogress 4 жыл бұрын
Btw i appreciate you including Flanders in the map of The Netherlands at 4:07 min . They think they are part of another country...so cute
@wouterberings6535 4 жыл бұрын
Om net zoals de 'gekoloniseerd' meme van studio massa te quoten: 'uw ontkenningsfase duurt al 2 eeuwen idioot jullie veldtocht ging ten onder als een zeew met watersnood'
@scotthughes4120 3 жыл бұрын
@@wouterberings6535 isn't Flaunders a part of Belgium? According to Google maps it is.
@gustavoc6579 4 жыл бұрын
One of the best yt channels around
@JL-pr5jk 3 жыл бұрын
Great video. You touched on this implicitly within your explanation, but to be explicit for the benefit of everyone watching... This circumstance exists (international tax avoidance) due to there being several independent countries which tax can be owed to, rather than an international body that assesses/levies a tax on entities. Meaning, several sets of varying rules, rather than a set of rules that apply uniformly to everyone. This practice will not subside because what is being done to achieve these results is effectively understanding which aspects of each countries' tax law are most favourable to an entity, these aspects are then used by the entity's accountants to allocate those portions of the business to those countries.
@JeverCraftNL 3 жыл бұрын
Love how you show a German town when you talk about the Netherlands
@CALEBBYPRODUCTIONS 4 жыл бұрын
Interesting and detailed narration on how companies are able to register shell companies and legally pay lesser in taxes
@duukniemantsverdriet2999 4 жыл бұрын
I like how you include half of Belgium (southern Netherlands as we like to call it) to the location of Netherlands Ltd.
@ChocolateMilkCultLeader 4 жыл бұрын
One of the best channels on KZfaq
@AS-rl5vr 4 жыл бұрын
"Healthy levels of inequality" - Economics Explained, 2019
@DublinDapper 4 жыл бұрын
Yeah like you know the opposite of Communism where everyone is equally poor
@zachgravatt5571 4 жыл бұрын
Didn't he mean healthy as in not too high?
@oscarl-b8870 4 жыл бұрын
@@zachgravatt5571 yeah but it still sounds a bit odd
@nehcooahnait7827 4 жыл бұрын
DublinDapper or try Market Socialism
@hunterxrick 4 жыл бұрын
@@oscarl-b8870 it only sounds off if you think inequality is by default, bad. Which it i isn't because we're all different :p
@lkgpuanimho0349 3 жыл бұрын
This is so well explained, haha. In Asia, the role of Netherlands and Ireland will be played by Singapore (the conduit), the role of Bermuda will be played by Hong Kong and Taiwan (the sink).
@nukeout 2 жыл бұрын
Wow this video really helped me understand corpo tax dodging
@LokiBeckonswow 4 жыл бұрын
awesome video btw
@Therealromario1 4 жыл бұрын
Can you do an overview of the dutch economy?? Thx for this keep up the good work. 😉
@Dear_Mr._Isaiah_Deringer 4 жыл бұрын
It runs on _De Ruijter._ That's it.
@prickowens9341 4 жыл бұрын
Middle class get milked so lower class can live on benifits and keep their mouth shut and higher class can do schemes like this , you are welcome.
@Mindforprogress 4 жыл бұрын
And you listened to me... Thank you!!!:D
@EconomicsExplained 4 жыл бұрын
hahah you are welcome
@Mindforprogress 4 жыл бұрын
#mademyday
@erlendstaavi1151 4 жыл бұрын
this must have a backstory
@Mindforprogress 4 жыл бұрын
@@erlendstaavi1151 it does, i asked if they could make a video on the economy of The Netherlands a couple of times. Granted this is about slightly shady tax policies, but i'm happy anyways.
@barendgaming2847 4 жыл бұрын
Did you just really make greater Netherlands?? Nice video I will subscribe!
@xawa5487 4 жыл бұрын
Much appreciated. Thank you. I have a remark on footage though: 4:20 is Limburg, Germany. Could it be that you mixed up the city of Limburg with the regions of Limburg in the Netherlands and in Belgium?
@AlwaysMorenZi 4 жыл бұрын
I identify as a multinational. Any tips for avoiding taxes on my salary and capital gains, extra points if I can also claim unemployment benefits while at it? Gotta stay competitive is all
@jonassrensen2576 4 жыл бұрын
Give me 2.500 EUR, and my team of accountants and lawyers will assist you with this
@AlwaysMorenZi 4 жыл бұрын
Yea I'm actually an accountant too but my employer(basically the government) wont let me do it. Dunno what's up with that. Boris has the right idea. Everything is a business expense and pay no salary to yourself.
@jonassrensen2576 4 жыл бұрын
@Henrik K Yes! reach out on wickr at cpcisthebest
@bocagelandscape 2 жыл бұрын
Just call one of the big four. They'll sort you out.
@Scrungge 4 жыл бұрын
6:15 what do you mean with Ireland still has corporate tax? I thought all the profit was in the license fees?
@Timsticlestv 4 жыл бұрын
The fee is profit to the second company it pays it to.
@drarthurs 4 жыл бұрын
Great video, I heard about these terms before but you explained them in a way that I could actually understand. 1. Please, how can these companies bring back and spend the money that now is on Bermuda? How can they expand their factories, buy other companies, invest in R&D, or even buy back their shares (which is ever so common now)? 2. Rich individuals can pay less taxes using loopholes like this too. So how that works? Again, I heard about trust funds, shell companies, etc but I don't understand them. Thank you
@advokat891 4 жыл бұрын
Great job! Please do a new one about Luxembourg scheme!
@Josh_Roberts 4 жыл бұрын
5:40 oldschool Runescape cash stack lol
@jes6561 4 жыл бұрын
psa: england is actually the no.1 tax haven for foreign investors
@reillywalker195 4 жыл бұрын
Specifically, it's the City of London and its network of British Overseas Territories that's the biggest tax haven.
@leeoswald668 4 жыл бұрын
Apple, Google, Facebook, Amazon, etc They use exactly double Irish 😬
@imbored1979 4 жыл бұрын
And Dubai
@emanuelriquelmemontoya3819 3 жыл бұрын
england is not a tax heaven because of the tax but because is really easy to buy real estate with shady money, that's why london real estate is so expensive
@oscararborist 4 жыл бұрын
Loved the video on Bill Benter. Thanks! If you're looking for ideas, how 'bout one on Jim Simons?
@Daniel6845 4 жыл бұрын
love how u used a osrs gp stack
@Justicsgenie 4 жыл бұрын
4:07 did the Netherlands just trade limburg for East and west flanders?
@Teun_Jac 4 жыл бұрын
Seems like a good deal
@EastofVictoriaPark 4 жыл бұрын
Bono is upset that you're bringing attention to his cause of paying the government less money, but also getting the government to spend money on the stuff he wants.
@khaase44 4 жыл бұрын
Have you ever considered pursuing an MBA? I just completed mine and it seems like you would excel in that type of environment, and you’d surely get ideas for videos from class discussions
@GhPadua 4 жыл бұрын
Hey could you do a video on Georgism? Land value taxation is a great progressive way to tax wealthy people and It can't be evaded (you can't send land overseas).
@pietervdb8070 4 жыл бұрын
If u tax the land owners, they put up the price of rent
@talideon 3 жыл бұрын
@@pietervdb8070 That's why a video on Georgism would be interesting. Also, an LVT isn't necessarily the kind of thing that is going to put up rent prices, and ought to actually moderate it: the more rent you charge forces the land value up (as you're extracting more value from it), thus making moderation of rent to lower one's tax burden important. Personally, I'm not so sure the ideas of Henry George would work as well now as they might have in the late 1800s, but they're certainly at least interesting, and something like them could be used to temper property speculation if done properly.
@unintentionallydramatic 4 жыл бұрын
Last time I was this early Lee Kwan Yew was still writing Singapore's tax plan.
@unintentionallydramatic 3 жыл бұрын
@bassndgnm phsbsdg No but I know my share.
4 жыл бұрын
Cool 😎 cheers from Portugal 🇵🇹
@-MiLkShAkE-0_0 4 жыл бұрын
🤣😭🤣 Thanks for the great lesson! Please post more videos like that!!
@vimalcurio 3 жыл бұрын
Why r u laughing
@Gsdigitalsmma 4 жыл бұрын
Trust me, I live in the Netherlands and there are so many tax scandles here. We pay too much taxes every year.
@Petrico94 4 жыл бұрын
I imagine Dutch from Red Dead Redemption 2 always running to a new town as soon as the place they're hiding out gets too dangerous or they can't work the same cons. That's what tax loopholes seem like, there are going to be countries with low or zero income taxes and countries will allow you to be taxed from your home country, but eventually those places are going to develop to the point they want nice roads too and scare off the big companies setting a business there in name only. Part of me wants to say "taxation is theft" and these companies are large enough to set up operations in countries with low tax and make the most from multiple regions, but I also know once a company get that big the CEO basically pays himself a billion dollars to show up and really doesn't need more money, and if you keep avoiding taxes on the rich things will just get worse for everyone else or they'll try to compensate with other taxes for the companies already paying legitimate taxes. I believe this problem will settle itself, they can't keep jumping to new countries without inspiring more business there or making them want some of that tax money they're hoarding. If it gets too bad maybe just say you can't have a business in Bermuda without at least paying a fee for doing business in the US (by the time they know that country has 0% taxes)
@normaaliihminen722 4 жыл бұрын
Except Dutch wasnt like that. He was proto-communist. Also I think you also ignore the fact or did not take into consideration that running huge busines have lots of expenses more than common man which means they more taxes than average joe from those expenses.
@sarathnair3787 3 жыл бұрын
Awesome video.. explains a lot a things.. like Why KPMG, PWC would have a presence here
@viktornicht260 4 жыл бұрын
Loved this episode! Could you please make a video how private persons COULD (In Theory, obviously) avoid high taxes? Would be very curious (not because I want to avoid taxes, obviously).
@KimmoHintikka 3 жыл бұрын
Move to a place where income tax is 0% or close to it like Monaco or Andorra. A lot of ppl with high taxable income do that in Europe, note though doesn't' work if you American(global taxation) or you aren't rich because living cost in Monaco, for example, is sky high and you need to have a residence there to take benefit of the no income tax situation.
@thedoruk6324 4 жыл бұрын
At least this time EE did not gave Belgium to the Netherlands (!) :)
@shboi8103 4 жыл бұрын
Woah!! Great video, but are you on speed?
@roenking4925 Жыл бұрын
"Speculate on the problems a solution might cause" Well said.
@Hrafnskald 4 жыл бұрын
Have there been countries who institute a corporate version of the Alternative Minimum Tax, wherein corporations who earn income have to pay at least a minimum rate of taxation, regardless of tax exemptions, write offs, and credits, the way the IRS applies an AMT to individual taxpayers? Pros/Cons of such a system?
@ihl0700677525 4 жыл бұрын
In that case, your tax will be something like excise duty or tariff, which the corporations will simply pass to their customers. To be fair, in whatever tax scheme, in the end it's always the consumers who bear the ultimate burden. Companies/businesses will always try to maintain a healthy profit margin, which is *the point* of starting a business in the first place. The communists tried to remove this "profit motive" by collectivize/nationalize everything, but, in the end, greed is indeed the engine of growth. Without profit motive, people will no longer have the motivation to improve their products and services. IMO we should abolish all corporate taxes, but also refrain from subsidize or bailing them out. If a corporation need new road or highway or any other infrastructures, let them pay for the construction. So long as they need it (i.e. it's profitable for them to do so) they will happily pay for it.
@Hrafnskald 4 жыл бұрын
@@ihl0700677525 I'm not talking about purely exported profits, but rather a flat tax on all incomes, whether they stay in the country or not.
@ihl0700677525 4 жыл бұрын
@@Hrafnskald Yea, I understand, and it will become some sort of excise duty for them to be passed on to their customer. For example, right now Corporation A sell pair of shoes for $20, with profit margin of $5. Now your flat tax is, let's say, 10% of their income, so for each sales of said pair of shoes, they will have to pay $2 tax. Thing is, they won't cut their margin in order to pay your tax, they will simply raise the price up to $23.
@heyho4770 4 жыл бұрын
@@ihl0700677525 The Problem with Infrastructure such as roads is EVERYONE uses it. The most profitable things for a company when building a Road are either limiting Access to lower maintenance or making profits of the road itself. Both are bad for you. The Interest of a state when building a road are (should be in some cases) how do I get my citizens from point A to point B as safe as possible. Which is a huge difference
@Hrafnskald 4 жыл бұрын
@@ihl0700677525 Exactly, and that is how businesses normally respond to taxes of all types. The main change of such a move would be to eliminate the competitive advantage some corporations get by negotiating tax exemptions or other handouts.
@mistrants2745 4 жыл бұрын
Whahaha he added flanders to the netherlands. I agree with this!
@mukherjee.p 3 жыл бұрын
I will like to thank Economics Explained to help expand my multinational corporation across the entire world. With his generosity, we were able to "somehow" secure our profits for ourselves which people said wasn't possible but I thought that's absolute bollocks. Anyway moving away from those haters, I again thank Economics Explained for helping us out.
@0pvo0 Жыл бұрын
The shot at 4:20 is the city called limburg, in germany. not the province of limburg, in the netherlands
@Sinaeb 4 жыл бұрын
none of this is illegal but it increases wealth gap, poverty etc etc, all that money that could have been spent on thing like healthcare, education, etc etc etc
@interdictr3657 4 жыл бұрын
yep, this screws the ordinary taxpayers.
@nNxiNgr 4 жыл бұрын
I'd say it's a bit more complicated. If they can't dodge taxes, they will "simply" pay the workers less money to make up for it. Which also decreases the taxes paid from the workers. Not to say that the current system is good, but it's more complicated than "gib money".
@Sinaeb 4 жыл бұрын
@@nNxiNgr pay less money to workers means no workers means no money at all
@kayeka4123 4 жыл бұрын
@@nNxiNgr I assure you, they would not pay their workers less if these loopholes were closed. Not because corporations have a sense of decency, but because they are already paying their employees as little as possible. Corporations exist to make as much money as possible. Whatever products or services are produced along the way are entirely incidental, and if they could get away with literal slavery, they would.
@joseg1943 4 жыл бұрын
Yes because Governments definitely spend our tax dollars properly
@remonm990 4 жыл бұрын
4:08 Belgium isn't the Netherlands xD
@samy11937 4 жыл бұрын
i love that you use runescape gold stack
@Rajivrocks-Ltd. 4 жыл бұрын
Very informative :o
@rameshhansaravendra 4 жыл бұрын
As a Singaporean, I find this offensive
@astrum097 4 жыл бұрын
You should make some videos about the economies of the Australian states (provinces?) And cities like Perth, Sydney, Canberra etc.
@soopastar2121 2 жыл бұрын
Great information! Question: Would you or have done a video of tax havens for DUBAI?
@Gustave1918 4 жыл бұрын
Limburg an der Lahn: A Dutch enclave in the middle of Germany. Did I miss something?
@Leventhan1 4 жыл бұрын
I would like to see the economics of mass immigration policies in Europe.
@paulrods 4 жыл бұрын
Taking notes! 😋
@s.n.7990 4 жыл бұрын
Please do a video about legal money laundry in Canada on the real state market (I am sure it also happens in many other countries as well)
@veriappelsiini 4 жыл бұрын
Or you just set up a company in Estonia that has 0 taxes on companies (as long as you do not take money out of the Company ofc).
@TokyoTaisu 11 ай бұрын
Estonia is a meme with their so called 0% tax scheme, the accountants you are forced to have do your accounting work for the government not for you. In reality you pay more than you would have done keeping it on-shore.
@charleschenhua 3 жыл бұрын
Dutch is genius. They know big companies are hard to tax without damage to economy. so they tax employees at 50% and make sure companies cannot fire employees easily.
@witoldschwenke9492 2 жыл бұрын
That's not particularly smart. You'd want them to be able to fire them easily because in return it makes it less risky to hire people. France has serious labor protection like this and its a huuuge problem.
@val-schaeffer1117 Жыл бұрын
Rubbish. There are enough backdoors to layoff employees. More importantly the cost is not borne by companies in form of being forced to keep employees on payroll, but by employees in form of having low wages for their productivity requirements and cost of living in Dutch cities. E.g. SAP developer in Amsterdam would be typically hired full time after years of minimum wage apprenticeship, at half of Houston wage, although Amsterdam and Boston have similar cost of living.
@ftaqi 3 жыл бұрын
I like how you use the runescape cash stack rs player for live
@sandeepjuneja5716 4 жыл бұрын
Wow 🤩 fantastic!
@katyoutnabout5943 4 жыл бұрын
“God-aweful stock footage collection” 😂
@tengkualiff 4 жыл бұрын
Isnt this like what Apple does?
@EconomicsExplained 4 жыл бұрын
that is exactly what apple does
@More_Row 4 жыл бұрын
Economics Explained that god damn fruit, I tell ya.
@A0A4ful 4 жыл бұрын
Pretty close. Co is registered in Nevada. R&D and design is incubated in California. Make iPhones and the ilk, in China, in the Foxconn sweatshops. Sell it all over the world at high markup prices. Repatriate the profits to Ireland. Maybe the IP too is registered there(I'm not too sure). Probably pay out their Co expenses from Ireland too... And is the on-and-off punching bag for the POTUS.
@salome8789 4 жыл бұрын
The footage you show at 4:18 is not the Netherlands, it’s a place in Germany called Limburg an der Lahn.