Google has decided to stop using an international tax loophole known as the “double Irish, Dutch sandwich”. In 2020, Google will no longer take advantage from this tax which allowed it and other corporations to shift money from Ireland to the Netherlands and Bermuda.
Google has used the scheme since 2004. For more than a decade, Dutch, Irish and U.S. tax law allowed Google to benefit from an effective tax rate in the single digits on its non-U.S. profits. Then, the loophole has allowed US Google to minimize their tax bills both domestically and overseas,
Under pressure from the European Union and the United States, Ireland in 2014 decided to shift off the arrangement, ending Google’s Irish tax advantages in 2020.