The subsidiary in the Netherlands is used to shift revenue from royalties earned outside the United States to Google Ireland Holdings, an affiliate based in Bermuda, where companies pay no income tax.
The tax strategy, known as the "Double Irish, Dutch Sandwich", is legal and allows Google to avoid triggering US income taxes or European withholding taxes on the funds, which represent the bulk of its overseas profits.
However, under pressure from the European Union and the United States, Ireland in 2014 decided to phase out the arrangement, ending Google's tax advantages in 2020.
Google Netherlands Holdings paid €3.4 million in taxes in the Netherlands in 2017, the documents showed, on a gross profit of €13.6 million.
Reuters
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