That list also includes the Cayman Islands, the Bahamas, Bermuda and the British Virgin Islands. International Investment reports that “all either have zero corporate tax or a rate lower than 9%.”
The Netherlands Junior Tax Minister announced the move on Twitter between Christmas and New Year. Menno Snel said: “By drawing up our own, tough blacklist, we are showing again that we are serious in our battle against tax evasion.
“And this is just one of the measures we are taking,” he added.
Nederland stelt zelf zwarte lijst laagbelastende landen vast. Daarmee laten we opnieuw zien dat het ons menens is met onze strijd tegen belastingontwijking. De lijst wordt gebruikt bij drie maatregelen daartegen: https://t.co/HlwSbXnUgL
— Menno Snel (@Menno_Snel) December 28, 2018
However, Guernsey has had a Tax Information Exchange Agreement with the Netherlands since 2008.
That document means both jurisdictions agreed then to share information on matters such as income tax, company tax, dividend tax and inheritance tax.
Pictured: Guernsey’s TIEA with the Netherlands can be read in full here.
It’s reported that the Netherlands had received 4.6 trillion euros (US$5.2 trillion) in “foreign direct investment” in 2017. But less than a fifth of that money remained in the Dutch economy, with researchers claiming about a third of the money ended up in “offshore tax havens.”
With Guernsey now on the tax blacklist it means that from 1 January, 2021, companies registered here will be subject to a 20.5 percent withholding tax on interest and royalties received from the Netherlands.
Pictured top: Guernsey has been placed on an international tax blacklist compiled by the Netherlands.