The Dutch implementation of the Anti-Tax Avoidance Directive
From January 1, 2019, the Anti-Tax Avoidance Directive (2016/1164) (hereafter: ATAD) is implemented by all EU Member States and therefore its measures already impact the field of (inter)national taxation. This contribution is intended to be both a theoretical and practical application of the main features of the system provided by the ATAD, in particular in relation to the implementation of the measures into Dutch national law. The practical consequences of the Directive will be illustrated by several examples.
15 Mar. '19
The ATAD represents a turning point in the history of EU tax legislation. It 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 ATAD contains five measures which will all be discussed in this blog (in the same order as set out in the Directive), even though the Netherlands only adopts three of the five measures. The five measures are the following:
- interest limitation rule;
- exit taxation rule;
- general anti-avoidance rule;
- Controlled-Foreign-Company rules; and
- the provisions on hybrid mismatches.