Japanese electronics corporation, Panasonic has reportedly made plans to move its European headquarters from London to Amsterdam in a bid to avoid potential tax related issues linked to the approaching Brexit in October 2018.

As per Panasonic Europes CEO, Laurent Abadie, the company had been considering the move from the past 15 months, on account of rising concerns related to Brexit such as access free flow of goods and people. However, Abadie refused to state specific numbers of employees that are likely to move to its operations in Amsterdam.

As per trusted sources, a number of multinational firms have made plans to move jobs out of the UK in the run-up to March 2019, whereas several Japanese financial companies plan to move their main EU bases away from London.

Reportedly, in 2016, the UK government vouched to cut corporation tax in a bid to encourage businesses to invest in the UK after the Brexit polls. Britain voted to leave the EU in 2016, but with less than a year to go, the UK and the EU are struggling to come on terms with the exit.

Panasonics decision was hence driven by a fear that Japan could start considering UK for its low tax rate, if it cuts corporate tax duties to attract foreign businesses, Mr. Abadie added.

According to Reuters, from Panasonics total employees based out of London office, 10 to 20 personnel engaged in auditing and financial operations are likely to move to its Netherlands operations, while only the investor relations staff would remain in the UK.

Japan, for the record, is a major investor in the UK, incorporating more than 800 Japanese companies, employing more than 100,000 people. However, financial firms such as Sumitomo Mitsui, Nomura and Daiwa have made it official as to no longer maintaining their European headquarters in London.

As per an official statement, Panasonics spokesperson confirmed that the registration of the companys European headquarters would move in October. Further sources cite that Britain is due to exit the European Union in March 2019.