Tax

Articles - On 6 October 2020, the European Union list of non-cooperative jurisdictions (the “EU List") was updated. The changes have an impact on bill of law nº 7547, providing that, as from 1 January 2021, interest or royalties, accrued or paid, should no longer be deductible for tax purposes when the beneficiary is a related enterprise established in a country included in the EU List.

Short Reads - In this Tax Alert we will summarize three recent tax developments that are relevant for international business with presence in the Netherlands.

Short Reads - Per 1 juli 2020 zijn intermediairs (en in sommige gevallen belastingplichtigen) gehouden om bepaalde potentieel fiscaal agressieve grensoverschrijdende constructies te melden bij de fiscale autoriteiten. Deze verplichting vloeit voort uit de Nederlandse implementatie van de EU-richtlijn inzake ‘mandatory disclosure’ (hierna: “DAC6”). Met DAC6 beoogt de Europese Commissie de internationale fiscale transparantie te bevorderen en ongewenste fiscale praktijken tegen te gaan.

Short Reads - This Tax Alert will address some recent developments in procedural tax law in The Netherlands. We will discuss some interesting developments in tax legislation, more specifically regarding (i) the implementation of DAC6, (ii) procedural tax law aspects of the Withholding Tax Act 2021 and (iii) publication of penalties for tax offences of professionals. Furthermore, we will reflect on (iv) relevant recent tax case law regarding the defensible position concept.

Short Reads - On 25 September 2020, the under minister of Finance released a draft legislative proposal open for public consultation until 23 October 2020. The draft legislative proposal includes a source taxation on profit distributions by Dutch companies to shareholders in low tax jurisdictions. It is proposed to enter into force as per 1 January 2024.

Short Reads - On Friday 10 July 2020, a member of the Dutch opposition party Groenlinks has submitted an initiative legislative proposal for a Conditional Final Dividend Withholding Tax Levy Emergency Act (the 'Proposal') to Dutch parliament. The Proposal provides for a conditional final Dutch dividend withholding tax ('DWT') levy due in the event of certain cross-border reorganizations.

Articles - What does the fund registration process involve, e.g., what documents are required to be filed? What are the consequences for failing to register a fund that is required to be registered in Dutch jurisdiction? Or, What are the types of entities that can be public funds in your jurisdiction?

Short Reads - This Tax Alert will address two Dutch international tax policy proposals as included in letters that the Dutch State Secretary of Finance recently sent to the Dutch parliament on 29 May 2020. We note that the proposals are still subject to parliamentary discussion and that at this moment in time, no legal text is available.