English subtitles for clip: File:Anna Drijver legt dividendbelasting uit (The Big Short).webm
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1 00:00:00,000 --> 00:00:08 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? 2 00:00:08,000 --> 00:00:15,000 The movie "The Big Short" from 2015 about the financial crisis in the US introduced an insane format that we are happy to borrow. 3 00:00:15,000 --> 00:00:24,000 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. 4 00:00:24,000 --> 00:00:28,000 After that, the movie would continue where it had left off. Dividend tax, by Anna Drijver. 5 00:00:31,000 --> 00:00:38,000 Companies can choose to pay out their profits to their shareholders. Such a payout is called dividend. 6 00:00:38,000 --> 00:00:43,000 The tax over dividend is called dividend tax. In the Netherlands, this is currently 15%. 7 00:00:44,000 --> 00:00:52,000 The Dutch government collects 1.4 billion Euro in dividend tax each year. And they collect all that from foreign shareholders. 8 00:00:53,000 --> 00:01:01,000 Wait, what? Dutch citizens can subtract their dividend tax from their income tax. So the net tax is none. 9 00:01:02,000 --> 00:01:10,000 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. 10 00:01:10,000 --> 00:01:13,000 But it does cause a large administrative burden for the shareholders. 11 00:01:13,000 --> 00:01:17,000 But here's the thing. In the UK, dividend tax has already been abolished. 12 00:01:17,000 --> 00:01:22,000 But there are some large companies like Shell and Unilever who are listed on stock markets in both countries. 13 00:01:22,000 --> 00:01:30,000 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. 14 00:01:30,000 --> 00:01:39,000 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.