IBM uses NL to trim tax bill by $2b
Favorable tax agreements through its Dutch branch of the holding played a key role in IBM's good profit figures over the past year, stated financial press agency Bloomberg today, based on its calculations. IBM located the holding company of more than 40 of its business units in the Netherlands since 1999, because of the favorable tax agreements.
This strategy enabled IBM to cut its taxes with $1.8 billion to the lowest level in the past 20 years, by routing almost all sales in Europe, the Middle-East, parts of the U.S.A., and Africa through the Netherlands. The profit, among other factors, raised the earnings per share to $16. The company strives to raise the earning even more in 2015 to $20 per share, utilizing the same tax strategy.