English subtitles for clip: File:Anna Drijver legt dividendbelasting uit (The Big Short).webm

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The intended abolishment of the dividend tax will be debated tomorrow by the Dutch government. But, dividend tax? Do you know exactly what it's about?

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The movie "The Big Short" from 2015 about the financial crisis in the US introduced an insane format that we are happy to borrow.

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The movie was interrupted by some really crazy short scenes in which an American celebrity would explain jargon from the financial world in clear terms.

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After that, the movie would continue where it had left off. Dividend tax, by Anna Drijver.

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Companies can choose to pay out their profits to their shareholders. Such a payout is called dividend.

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The tax over dividend is called dividend tax. In the Netherlands, this is currently 15%.

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The Dutch government collects 1.4 billion Euro in dividend tax each year. And they collect all that from foreign shareholders.

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Wait, what? Dutch citizens can subtract their dividend tax from their income tax. So the net tax is none.

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Foreign shareholders can usually do the same, if the country has a deal with the Netherlands. And the Netherlands has the most deals from all countries worldwide.

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But it does cause a large administrative burden for the shareholders.

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But here's the thing. In the UK, dividend tax has already been abolished.

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But there are some large companies like Shell and Unilever who are listed on stock markets in both countries.

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So after the Brexit, they will have to make a choice. And that seems like an easy choice, pick the country that doesn't have a dividend tax.

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By abolishing the dividend tax, prime minister Mark Rutte hopes to keep those countries in the Netherlands. The opposition views it as a present for the foreign shareholders.