Multilateral Instrument (MLI) ratified by Dutch Parliament
It should also be noted that during the ratification procedure the Dutch Parliament followed the provisional list of choices it had provided, except for one amendment. The Lower House amended the ratification bill in respect of the modification of the permanent establishment (hereafter: PE) status. This amendment led to a reservation of art. 12 MLI, […]
OECD consultation regarding the tax challenges of the digitalisation of the economy
The OECD invites interested parties to send in their written comments before March 6, 2019. The comments provided will assist the members of the OECD/G20 in the development of a solution for its final report on the tax challenges of the digitalisation of the economy, which is expected to be published in 2020. The consultation […]
Dutch implementation of the Mandatory Disclosure Directive (DAC6)
The Directive in shortThe Directive contains mandatory disclosure requirements for intermediaries and relevant taxpayers, aimed at boosting transparency to tackle aggressive cross-border tax planning. The arrangements described as “reportable” are very wide-ranging and therefore it cannot be assumed that taxpayers which do not want to be associated with “aggressive tax avoidance” do not have arrangements […]
The potential impact of a Brexit on Tax
On 14 November 2018 the European Commission and the UK reached an agreement on the Withdrawal Agreement and on an outline of the political declaration on the future EU-UK relationship. For the deal to become law, the agreement has to be ratified by the 27 EU Member States as well as the UK and European […]
The Hague decision on Netherlands non-resident tax
Under art. 17(3)b Corporation Income Tax Act, a foreign company, which owns a substantial shareholding (i.e. a shareholding of a t least 5%) in a Dutch company is taxed as a non-resident taxpayer, with respect to income from such shareholding, if the taxpayer owns the substantial shareholding with the main purpose the avoidance of income […]
This close to disclose?
New mandatory disclosure requirements for intermediaries and relevant taxpayers, aimed at boosting transparency to tackle aggressive cross-border tax planning, will enter into force on 25 June 2018. EU Member States have until 31 December 2019 to implement the amendments to have it formally in place on 1 July 2020 at the latest. Even though the […]
New developments regarding Netherlands substance requirements
In recent Blogs we have discussed the impact of legislative amendments implemented in the Dutch WTA and CIT Act effective from 1 January 2018. These amendments aimed to eliminate the difference between holding cooperatives and public (NV’s) and limited (BV’s) liability companies. In particular the broadened general exemption from the withholding obligation for NV’s and […]
German Ministry of Finance modifies anti-treaty shopping rules in response of ECJ decision
The Deister Holding and Juhler Holding decisions of the ECJ provided these investment holdings with an opportunity to administer evidence that exclusive management of subsidiaries and income derived solely from that management could not be regarded, of itself, as implying the existence a wholly artificial arrangement that does not reflect economic reality. Contrary to what […]
ECOFIN meeting: obligations for intermediaries and amendments to EU blacklist
Obligations for intermediaries advising on tax planning schemes The Council of the European Union reached agreement on a draft directive aimed at boosting transparency to tackle aggressive cross-border tax planning. The draft directive will require intermediaries such as tax advisors, accountants and lawyers that design and/or promote tax planning schemes to report schemes that are […]
German Tax Court utilizes third party bank loan to benchmark shareholder loans
The Finance Court of Cologne (Germany) has taken an interesting approach on transfer pricing methodology. The Tax Court decided that an internal Comparable Uncontrolled Price (“CUP”) is preferred as transfer pricing method on analyzing the arm’s length remuneration on an intercompany loan, even though the loans did not appear to be comparable from the outset.During […]
