Our tax profile in the Netherlands
Shell has been active in the Netherlands for more than a century and our global headquarters are in The Hague. Most of Shell's activities are represented in the Netherlands.
These include our Pernis refinery, the Moerdijk chemical plant and about 500 retail sites.
Through our 50% interest in Nederlandse Aardolie Maatschappij (NAM) we produce gas and oil onshore and offshore. We invest around $1 million every day in innovation at Shell Technology Centre Amsterdam.
Together with partners, Shell is involved in the development of solar power and offshore wind farms in the Netherlands. Our global New Energies business, which focuses on new fuels and power, is led from The Hague.
Our businesses in the Netherlands employ almost 10,000 people on a permanent basis (including NAM). In 2018, we generated more than €3 billion in turnover for more than 2,500 companies in the Netherlands through the goods and services we bought from them.
We collected and paid the Dutch government around €4.5 billion of tax from our customers, employees and shareholders. We also paid €0.5 billion in corporate income tax and royalties through our 50% interest in NAM.
We did not pay any other corporate income tax in the Netherlands in 2018. This was because there was no remaining profit to tax after the deduction of business costs and the offset of losses from previous years.
Prior-year losses include losses on operations, foreign exchange movements, interest charges on loans that fund investments, and write-offs for failed investments (liquidation losses). In 2018, no liquidation losses were claimed.
As Shell is a large international group of companies, the tax deductible costs associated with our headquarters can be relatively high compared with the operational profits generated in the Netherlands.
The effect of the tax system on the tax position of multinational companies in the Netherlands has been the subject of a recent public debate. This debate focused on why large multinationals with headquarters in the Netherlands do not pay as much corporate income tax in the Netherlands as some think they should.
In this report, we share how we are taxed globally and the corporate income tax that is due and why. We also explain that corporate income tax is just one part of our total contribution to society.