The Dutch transnational consumer product corporation Unilever on Tuesday declared that it will be moving its principal operating headquarters to the Dutch city of Rotterdam, passing over the British capital London. The move comes as the Dutch government has sought to increase the attractiveness of its business climate through lowering of corporation taxes and scrapping taxes on corporate dividends.
Fears among the British business community rose throughout 2017 as several European economic centers vied with each other to lure large companies away from the City of London as the UK prepares to exit the European Union.
#r4today— John Peek #FBPE (@john196201) March 15, 2018
If Unilever is headquartered in Rotterdam, am I correct in thinking that will mean that their corporation tax will be paid now to the Netherlands?
It's a mystery why Unilever would pick a lower-skilled city like Rotterdam, over somewhere like Leeds. Probably nothing to do with this 🙄 pic.twitter.com/sdKk15MsLc— Tom Forth (@thomasforth) March 15, 2018
In November 2017 Paris won the right to host the European Banking Authority, over which it competed with Frankfurt, Milan, Dublin and Amerstdam.
French President Macron used his first year in office to reduce financial regulations and levels of corporation tax as a way of making the French capital more attractive to companies currently headquartered in London. France has also campaigned for London not to be allowed to serve as the main clearing center for Euro-denominated transactions, seeking to restrict such a right to member states of the Eurozone.