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Can someone explain to me why have PayPal and Skype set up shop in Lux?

Asked in Offshore (General) for Luxembourg

these two firms are the shining beacons of 21 st century ecommerce. Both have set up in LUx and I am curious to know exactly why (overall taxation level is my hunch)?
The exact structure of a company like PayPal would be of interest as they mop up cash from all over the world presumably not paying a penny in uk, us France Spain Italy etc..

Tax Interest Commerce France Italy Spain
Posted by Lowtax user on May 05, 2012 at 17:17


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It allows them to do business in Europe more effectively in multiple countries. Structure based for ease of management over multiple tax systems...
Posted by Lowtax User on May 07, 2012 at 16:42


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Skype for the different story. In early skype investors Luxembourg (Mamgrove capital partner) believed in the project of skype they brought to the funds that society develops. After Luxembourg has made laws for ecommmerce interesting (we have apple, amazon aol Before) and the IP. When Luxco receive dividends from subsidiaries dividends (subject to certains conditions) is exempt. Another example, if skype sell a subsidiaries the capital gains is exempt (under certains conditions).

Paypal has a banking license. The Luxembourg is a financial and banking center very important. Taxation is very stable and there are many treaties with many countries. There is (was) banking secrecy. As for Skype IP and other advantages are that for Paypal to settle in Luxembourg is very interesting.

kind regards,

email: vincent.tucci3@gmail.com

Posted by Lowtax User on May 11, 2012 at 13:26


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