DAC6 extension proposal
The European Commission proposes to grant a three-month extension for filing information about cross-border tax arrangements due to the corona virus. The due date would be Nov. 30 instead of Aug. 31.
COVID relief: Corona reserve
The Dutch government will allow companies to form a ‘corona tax reserve’ in the year 2019. The reserve amounts to the expected 2020 loss as a result of the corona crisis and is maximized at the 2019 fiscal profit. As a result, a refund of corporate income tax relating to 2019 may be obtained quickly. This creates a liquidity advantage.
Letter on investment climate
The Dutch Ministry of Economic Affairs published a letter with a broad view on improving the Dutch investment climate to keep and attract foreign businesses. The government targets all businesses that are willing to build a substantial presence in the Netherlands. Specific focus sectors include IT, Life Sciences & Health, AgriFood, High Tech Systems & Materials, Chemicals and (sustainable) Energy. The letter does not yet contain a response to the recent Report on the taxation of multinationals, but acknowledges the importance of a competitive and predictable tax system for maintaining an attractive Dutch investment climate.
COVID relief: Accelerated loss compensation
Dutch Parliament adopted a resolution to amend the Dutch tax loss settlement rules in the context of the Covid-19 situation. Under the current loss settlement rules, 2019 profits can only be offset against 2020 tax losses when filing the 2020 corporate income tax return, i.e. earliest in 2021. Dutch Parliament requests the Dutch Government to allow the 2020 tax losses to be carried back already in the course of 2020 based on the estimated 2020 tax loss amount. If implemented, this would be a very welcome measure to improve liquidity of Dutch taxpayers affected by Covid-19 because the offset would result in a tax refund.
Report on taxation of multinationals
Report by an advisory committee on the taxation of multinational companies with suggestions for specific tax measures.
Relief package for COVID-19 crisis
The Dutch government just announced a package to soften the economic effects of the coronavirus for businesses. All businesses may request a 3 month extension for paying Dutch taxes (CIT, VAT, wage tax, income tax) without having initially to furnish proof. Reduced taxation interest applies. Further, a lower preliminary CIT assessment may be requested. Several non-tax measures include compensation for wage costs, financing aid and a social minimum aid.
Tax Article on Pillar 1 – Caterpillar 1
Check out this opinion article by Marie about the implications of Pillar 1 for the Netherlands and specifically for distribution activities (in Dutch).
First international tax ruling!
First international tax ruling by vanOlde! #avoiddoubletaxation
Outline of Pillar 1 published
An outline of Pillar 1 tax measures was published by the Inclusive Framework. Pillar 1 aims to re-allocate taxation rights of automated digital service companies and consumer facing businesses to user/market jurisdictions.
ECJ ruling Köln-Aktienfonds
The European Court issued its judgement in Köln-Aktienfonds (KA Deka, C 156/17) about Dutch dividend withholding tax reclaims by a German Sondervermögen.