Netherlands: Proposed amendments to tax ruling policy

Proposed amendments as of the beginning of October 2023

Proposed amendments as of the beginning of October 2023

The Deputy Minister of Finance announced in a letter dated 6 July 2023 to the Lower House of Parliament, the following proposed amendments to the tax ruling policy as of the beginning of October 2023:

  • Under strict conditions, advance certainty may be given for the dismantling of a tax avoidance structure.
  • The Dutch Tax and Customs Administration also may provide advance certainty in situations in which it wishes to apply law provisions for tax base protection, so that Dutch and foreign tax avoidance elements are completely removed and there are no (longer) affiliated flows to non-cooperative jurisdictions and/or low-tax states.
  • The Dutch Tax and Customs Administration will not provide advance certainty in situations in which the dismantling results in non-taxed or low-taxed proceeds elsewhere, against which depreciation potential arises in the Netherlands. Nor will advance certainty be provided in situations in which there are still transactions with affiliated entities established in states that are included in the regulation on low-tax states and non-cooperative jurisdictions after the dismantling or application of law provisions for tax base protection, unless the requested advance certainty relates to third-party transactions when applying the innovation box or the tonnage tax scheme or to the tax consequences of third-party transactions when concluding an advance pricing agreement (APA).
  • When appropriate, a provision will be included in bilateral and multilateral APAs stating that transfer pricing adjustments from countries that are not involved in the bilateral or multilateral APA may be taken into account.

Read a July 2023 report prepared by the KPMG member firm in the Netherlands



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