New US tax reform
The reformed US tax system will affect group companies doing business in the US. Furthermore, it will have an impact on other jurisdictions, which will look at the implications of the new measures for their own economy and tax system. Key provisions of the new US tax code are: • Reduction of the Corporate Income […]
Introduction of a dividend withholding tax exemption
The new legislation aims to eliminate the difference between holding cooperatives and BV’s/NV’s by (i) introducing a dividend withholding tax obligation for holding cooperatives and (ii) provide a withholding tax exemption for BV’s/NV’s. Under the anti-abuse rules, which have to be assessed when applying the exemption, the interest in the Dutch entity distributing the dividend […]
Amended substance requirements
The use of the list of substance requirements has also been broadened by the Dutch Tax Bill 2018. In this respect, companies need to have “relevant substance” in order to benefit from the dividend withholding tax exemption (see our blog) and in the Netherlands non-resident tax provisions, the substance of the foreign shareholder is assessed.The […]
Fiscal measures in German coalition agreement
The new German government’s tax ambitions are the following: A strong focus on reducing tax competition in the EU by suggesting a collaboration with France on a common consolidated tax base (“CCTB”) and minimum tax rates. France, which has a relatively high corporate tax rate, is known for pushing the policy debate on achieving a […]
Transfer of valuable intangibles
Last week we provided a second opinion to an accounting firm in respect of the envisaged transfer of valuable intangibles of one of its clients, a MNE, to a Luxembourg company. The MNE manufactured and distributed products. The value of the products was not determined by the technical features of the products, but rather by […]
Adjustments Luxembourg Transfer Pricing Rules
On 27 December 2016, the Luxembourg administration for direct taxes published a Circular (no. L.I.R. n° 56/1 – 56bis/1) on group financing activities. The Circular is brought about by the codification of the arm’s length principle in the Income Tax Act (ITA) and seems to be inspired on the OECD Action plans 8 – 10 […]
Changes to the Netherlands Innovation Box: limitation on IP assets
The Netherlands government promotes engagement in research and development (R&D) activities through a preferential corporate income tax regime (i.e. the innovation box) and specific R&D tax incentives granted to employers with regard to salaries paid to employees who carry on qualifying R&D activities and related capital expenditure (i.e. the WBSO). In the last few months […]
Transfer pricing aspects of centralized purchasing
In this blog we will illustrate the application of the arm’s length principle in case of the implementation of a central purchasing function. This type of transfer pricing analysis ultimately reflects the central importance of the functional analysis in order to understand the role played by each of the parties in the creation of synergies, […]
Changes to the Netherlands Innovation Box: Profit Allocation
The Netherlands government promotes engagement in research and development (R&D) activities through a preferential corporate income tax regime (i.e. the innovation box) and specific R&D tax incentives granted to employers with regard to salaries paid to employees who carry on qualifying R&D activities and related capital expenditures (i.e. the WBSO). In the last few months […]
