$140m
interest
payment
AZ offices in the
Netherlands
AZ offices
in the UK
The outcome
Two tax deductions on the same payment by the same Dutch co-op. One in the UK, one in the Netherlands. Here’s how
What do
the Dutch see?
Dutch co-ops are well known. they are like other taxable companies in the Netherlands. There is no need to worry about the tax affairs of the co-op’s owner. Any interest costs are treated as borne by the co-op in the Netherlands
Tax result
The interest payment by AZ Co-op creates a Dutch tax deduction that the group can use to lower its Dutch tax bill
What does
the UK see?
Dutch co-ops are unfamiliar. Instead of grappling with how to treat them, co-ops are classified as 'transparent' by the UK. That means costs incurred by AZ Co-op are treated as if they were costs borne by the co-op's owner, which is AstraZeneca in the UK
Tax result
The interest payment by AZ Co-op creates a UK tax deduction for its owners that the drugs group is able to use to lower its UK tax bill
AZ
Co-op
$140m
interest
payment
AZ offices in the
Netherlands
AZ offices in the UK
What do the Dutch see?
Dutch co-ops are well known. they are like other taxable companies in the Netherlands. There is no need to worry about the tax affairs of the co-op’s owner. Any interest costs are treated as borne by the co-op in the Netherlands
Tax result
The interest payment by AZ Co-op creates a Dutch tax deduction that the group can use to lower its Dutch tax bill
The outcome
Two tax deductions on the same payment by the same Dutch co-op. One in the UK, one in the Netherlands. Here’s how
What does the UK see?
Dutch co-ops are unfamiliar. Instead of grappling with how to treat them, co-ops are classified as 'transparent' by the UK. That means costs incurred by AZ Co-op are treated as if they were costs borne by the co-op's owner, which is AstraZeneca in the UK
Tax result
The interest payment by AZ Co-op creates a UK tax deduction for its owners that the drugs group is able to use to lower its UK tax bill
AZ Co-op
Netherlands
$140m
interest
payment
AZ offices in the
Netherlands
AZ offices in the UK
What do the Dutch see?
Dutch co-ops are well known. they are like other taxable companies in the Netherlands. There is no need to worry about the tax affairs of the co-op’s owner. Any interest costs are treated as borne by the co-op in the Netherlands
Tax result
The interest payment by AZ Co-op creates a Dutch tax deduction that the group can use to lower its Dutch tax bill
The outcome
Two tax deductions on the same payment by the same Dutch co-op. One in the UK, one in the Netherlands. Here’s how
What does the UK see?
Dutch co-ops are unfamiliar. Instead of grappling with how to treat them, co-ops are classified as 'transparent' by the UK. That means costs incurred by AZ Co-op are treated as if they were costs borne by the co-op's owner, which is AstraZeneca in the UK
Tax result
The interest payment by AZ Co-op creates a UK tax deduction for its owners that the drugs group is able to use to lower its UK tax bill
AZ Co-op
Netherlands