Dutch companies pledge to not avoid taxes

Over 40 Dutch multinationals and other large companies pledged to no longer avoid or evade taxes by singing the Tax Governance Code drafted by entrepreneurs' organization VNO-NCW. By signing, the listed and unlisted companies said they regarded tax payment as a duty and promised not to use constructions and tax havens to avoid doing that duty, AD reports.

Twenty of the 25 companies in the AEX in Amsterdam signed the Tax Governance Code. Among the signatories are Philips, Jumbo, Ahold Delhaize, Randstad, Shell, Heineken, Rabobank, and KLM.

"This step is truly unique internationally. We know of no other countries that have done this," VNO-NCW chairman Ingrid Thijssen said to AD. According to her, the tax code will contribute to transparency around the taxes that companies pay. "We are leading the way in this, and these companies show leadership and take a wonderful extra step that I am proud of."

VNO-NCW developed the code in consultation with companies, using expertise from trade unions, NGOs, tax experts, and scientists. According to Thijssen, none of the participating companies currently meet all the requirements set by the code. "We deliberately set the bar high. In this way, the participating companies challenge themselves to continue to improve."

The code requires companies to be transparent about their tax strategy and principles, publish all taxes paid per country, and disclose all the tax benefits they use. Companies that do not comply with the rules have to explain whey they didn't