CBS: Profit flowing out of the Netherlands underestimated by billions

CBS: Profit flowing out of the Netherlands underestimated by billions
CBS: Profit flowing out of the Netherlands underestimated by billions

The profit flowing from Dutch subsidiaries to their head offices abroad is greater than expected, according to Statistics Netherlands (CBS). Research published on Friday shows that gross national income (GNI) between 1995 and 2021 is on average 10.4 billion euros lower annually.

Profits made by Dutch subsidiaries can flow back to the head office abroad, for example to be spent on research. Such gains are not included in gross national income (GNI). In contrast to gross domestic product, GNI does not include income from foreign companies in the Netherlands.

According to the new calculation, GNI last year was 837.2 billion euros. Previously, that seemed to be 853.1 billion euros. Profits of Dutch people abroad do fall under GNI again, but according to the CBS study, those profits turned out to be in reasonable agreement with earlier estimates.

Less money to the EU

“For a long time it was assumed that companies based in the Netherlands were also Dutch companies,” says Peter Hein van Mulligen, chief economist at CBS. An inventory carried out a few years ago showed that this was not correct, after which CBS decided to screen the finances of “many hundreds” of companies.

The new estimate may have consequences for the amount that the Netherlands must pay to the EU each year. Part of that amount is determined on the basis of GNI. A calculation of NRC suggests that it could be about a hundred million annually, but Van Mulligen cannot confirm that.

Read also Tax code for multinationals is ‘step in the right direction’, experts say

The article is in Dutch

Netherlands

Tags: CBS Profit flowing Netherlands underestimated billions

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