Tesla to enter Indian investments via Netherlands: Why?

US automaker, Tesla will route into Indian investments via the tax-friendly jurisdiction of the Netherlands. Tesla Motors Amsterdam is the parent company for Tesla Motors and Energy, India. Tesla is registered in California, and Tesla Motors, the Netherlands, is its subsidiary.

The Netherlands is one of the handpicked choices for US-based companies as it provides favourable and reasonable tax rates and possessed strong intellectual property protection framework which is an exception to the general trend. Tesla would benefit itself with capital gains and dividend payments by adopting the corporate structure in India.

The dividend rates and taxes are lower if an investor chooses to come through the Netherlands, say tax experts. They further added that choosing tax havens to route investments is no longer that simple as countries globally have been coming up with anti-avoidance laws.

MG Motors entered India in 2017 via China following its home jurisdiction of the parent company SAIC Motors. KIA Motors started to emerge in India from South Korea following its home corporate of KIA Corporation. But Tesla was adamant not to enter Indian investment with its home jurisdiction which resulted in an effective and smart solution for the whole.

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