Panasonic has announced it will relocate its European headquarters from Bracknell, UK, to Amsterdam in October, citing Brexit-related concerns. The move aims to avoid potential tax complications arising from the UK's departure from the European Union.
Laurent Abadie, chief executive of Panasonic Europe, told the Nikkei Asian Review that the decision was driven by fears that Japan might classify the UK as a tax haven if it reduces corporate tax rates to attract business. If Panasonic were to pay less tax in the UK, it could face a higher tax bill in Japan.
The company had been considering the relocation for 15 months, with concerns about the free movement of goods and people post-Brexit being key factors. Panasonic Europe confirmed that the transfer will take effect from 1 October, affecting fewer than 10 of its 30 staff members.
In a statement, Panasonic said the move was intended to improve efficiency and cost competitiveness, and assured that no UK business operations would be impacted. The UK government had pledged in 2016 to cut corporation tax to encourage continued investment after the Brexit referendum.
Japan is a major investor in the UK, with over 800 Japanese companies employing more than 100,000 people. However, several Japanese financial firms, including Nomura, Sumitomo Mitsui, and Daiwa, have already announced plans to move their EU bases from London.
