Netherlands Shell Companies Create $1.3B Tax Gain, Study Finds

Companies save at least 1.2 billion euros a year ($1.37 billion) in taxes by routing royalties through the Netherlands, a study from the Dutch government found.

The study focused on how companies route dividends, royalties, and interest in and out of Dutch shell or “letterbox” companies. It measured the tax planning gain companies realize when they use the Netherlands as a conduit.

• Most of the royalties going through Dutch companies come from Ireland, Singapore, and the U.S., and go to Bermuda and the U.S., the study found. The U.S., U.K., Switzerland, and Luxembourg are the destinations for about ...