June 21, 2021

The Spanish subsidiary of Booking transfers its income to the Netherlands | Economy

The Spanish subsidiary of Booking transfers its income to the Netherlands | Economy



Bookings Hispanica, Spanish subsidiary of the popular hotel accommodation platform, Booking, registered a net profit of 9.79 million during 2016, which represents an increase of 34.2% with respect to the profits of the previous year. The company has just deposited the annual accounts for 2016 in the Mercantile Registry and is waiting to register those of last year. The other Spanish subsidiary of the group, Booking Customer Service Center, has not yet registered the 2016 accounts.

The digital giant of tourist accommodation in Spain remains the same fiscal strategy that most technological multinationals. The Spanish subsidiary acts as a broker of the reserves in the country. This corporate architecture allows the group to legally transfer the benefits to the parent company located in the Netherlands, a country with more advantageous taxation because it offers privileged tax agreements to these corporations.

"The company operates under a service contract granted by the company of the Booking.com group, BV, for which this company is billed for all operating expenses incurred and a commission percentage on said expenses (5% in 2016 and 2015 ), and a commission that corresponds to 2% of the income obtained by Booking.com, in Spanish territory, "the Spanish delegation points out in its annual accounts. Bookings Hispanica declares an income of 25.7 million in 2016, which represents a growth of 18.2% over the previous year. This act formula allows the platform to legally divert hundreds of millions of its revenues to the Netherlands. The company pays 3.5 million euros for corporate tax in Spain.

Precisely, the auditor, Deloitte, draws attention to this practice. "The total amount of turnover corresponds to the income derived from said contract (of services)," he says in the audit report, without qualifications.

.



Source link