The fast-food giant has announced plans to transfer its tax optimization holding company from Luxembourg to the UK, where the corporate tax rate is set to fall from 20% to 17% in 2020.
There are those to whom the Brexit is a success : American giant McDonald’s has announced its intention to transfer its tax optimization holding company from Luxembourg to the UK.
The move comes shortly after the European Commission announced its intention to tax multinationals in every country where they make profits.
The new company, which will be based and domiciled in London, will receive all profits, royalties and intellectual property rights earned by the fast-food chain outside the USA, McDonald’s announced in a press release.
In concrete terms, the net profits of all McDonald’s restaurants in Europe will henceforth flow to the UK, rather than to the European Union.
All functions supported by McDonald’s headquarters in Luxembourg will be transferred to the new UK holding company, and McDonald’s administrative offices in Geneva will be closed.
All profits of the new international holding company will be subject to the UK corporate tax rate: currently set at 20%, this rate is set to fall to 17% by 2020, making it the lowest in Europe.
Be that as it may, McDonald’s announcement is very good news for the British authorities, who are struggling to reassure people that the country will remain competitive despite the forthcoming Brexit.