The Dutch implementation of ATAD1

From January 1, 2019, the first EU Anti-Tax Avoidance Directive (2016/1164) (hereafter: ATAD1) is implemented by all EU Member States. A number of its provisions impact the field of (inter)national taxation. In the Netherlands we have seen the introduction of an earnings stripping measure and CFC legislation. In addition a number of provisions limiting the deduction of interest expenses have been abolished. This contribution intends to provide a summary. To serve its’ purpose we have also itemized a number of observations obtained in day-to-day to practice in relation to the earnings stripping provisions and its’ relation to the Dutch fiscal unity, ECJ legislation and transfer pricing.

15 Mar. '19 Yoran Noij

The ATAD1 sets out a framework and minimum implementation requirements for the Member States in order to cope with tax avoidance practices that, according to its title, ‘directly affect the functioning of the internal market’. The ATAD1 contains the following provisions which will be discussed in this blog (in the same order as set out in the Directive):

  • interest limitation rule;
  • exit taxation rule;
  • general anti-avoidance rule;
  • Controlled-Foreign-Company rules; and
  • the provisions on hybrid mismatches.

Yoran Noij

Yoran is an associate and member of the Dutch Association of Tax Advisers (NOB)

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