McDonald’s moves headquarters from London to Geneva
McDonald’s, one of the most famous fast food chains in the world, has now moved its headquarters to Geneva from London since Switzerland is a better location to manage its IP licensing through Europe. This widely anticipated move was a year in the planning and is set to be completed this autumn. This move is not the result of the new UK legislation which governs the taxation of foreign profits. The change was made due to the ability to strategically manage key intellectual European property rights.
The company has also said that its overall tax tally will remain unaffected by the move. While the current corporate tax rate is 28 percent in the United Kingdom, the McDonald’s tax rate will remain at thirty percent after its relocation move. The corporate tax in Switzerland varies between thirteen to thirty five percent depending on the location of residence. This switch by McDonald’s is seen as a strategic move to steer clear of the new tax reforms in the United Kingdom.
Another important factor cited by the company as the reason for the move is that the political and economic environment is extremely stable in Switzerland. McDonald’s will make this move by autumn of this year.