The Netherlands does not want to lose Shell for this reason will not tax the dividends of companies.

Recall that Shell’s head office intends to relocate to London due to high tax rates on company dividends. According to leading analysts, the country’s parliament and the government are in full solidarity on this issue.

This week, Royal Dutch Shell announced the purpose of relocation to London which will entail obtaining English tax residency.

The company’s discontent has arisen for a long time, Shell representatives have been complaining for several years about the limitation of the possibility of paying dividends.

In 2005, the company approved the authorized capital, which includes two types of shares:

– Type A – Royal Dutch Shell, payments on which are regulated by the legislation of the Netherlands.

– Type B – Shell Transport & Trading, legal relations on shares are regulated by English law.

Owners of both types of shares have the same rights, but a tax payment of 15 percent is charged on dividends of type A shares, while type B does not. There are not many countries in Europe where dividend payments are not taxed, one of it is the United Kingdom.

For this reason, during the extraordinary shareholders’ meeting in mid-December, the issue of changing the capital structure of the joint-stock company and converting all into shares of Shell Transport & Trading, with its location in London, will be put forward.

Moreover, two years ago a similar situation took place, Unilever also moved to London and lost tax residency of the Netherlands.