Investment deduction BIK: legislative proposal
The bill to implement the job-related investment deduction “BIK” has been published. The BIK provides for a wage tax reduction for investments into newly acquired business assets. The BIK forms a welcome compensation for businesses contributing to the economy.
Tax article on liquidation loss proposal
Commentary (in Dutch) to the new proposed liquidation loss rules, published in NL Fiscaal.
Proposed exit tax in the dividend WHT Act
Update on Dutch dividend exit tax proposal expanding the scope.
Tax plans 2021
The 2021 Dutch tax plans have been published. Read our tax alert here!
Exit tax in dividend tax: a systematic analysis
Check out the NLF-W contribution of Hans about the Green Left party’s exit tax proposal (in Dutch).
2021 tax plan impacts real estate transactions
The potential tax measures that recently appeared in the Dutch press will have a material impact on Dutch real estate transactions.
Rumours on potential tax measures
Dutch newspapers report on budget plans of the Dutch government to keep the CIT rate at 25% (with a reduced step-up rate of 15% for the first EUR 400k of taxable profits). Companies can benefit from increased investment deduction possibilities.
EU loses Apple state aid case
Today, the General Court of the EU ruled that Ireland did not grant illegal state aid to Apple through contested tax rulings. According to the General Court, EU state aid rules require taxation to be based on the arm’s length principle, which means that tax should be levied over income allocable to value generated from functions in the jurisdiction.
Proposed exit tax in the dividend WHT Act
An opposition member of Dutch parliament proposed a bill to introduce an exit tax and step-up into the Dutch dividend withholding tax. The exit tax would apply to migrations, mergers etc., but only to a limited number of states that do not have a comparable withholding tax (most notably: the UK).
DAC6 guidance published
The Dutch Ministry of Finance published the written guidance (leidraad meldingsplichtige grensoverschrijdende constructies) with further details on how to interpret and apply the Dutch implementation of EU Council Directive 2018/822 (DAC6).
DAC6 extension granted by NL
The Netherlands will postpone the deadlines for the DAC6 reporting obligation by 6 months. The notification obligation will take effect on 1 January 2021 (instead of 1 July 2020). The retroactive period will be maintained. This means that structures set up from 25 June 2018 must be reported.
DAC6 extension: EC approval
The European Commission decided to allow EU member states to defer the deadline of filing information on potentially aggressive arrangements (DAC6) by up to 6 months. Please note that European member states may or may not follow the postponement.
COVID relief: No tax haven-requirement for individual aid
The Dutch government announced a “no tax haven” requirement for companies receiving individual aid in view of the corona crisis. Applicants may not be established in listed low tax jurisdictions (the same applies for direct subsidiaries and major shareholders), nor make payments from the Netherlands to such countries. A 12-month term applies to meet this requirement.
Real estate development & 37d VAT Act
The Supreme Court ruled that the transfer of a newly developed property two weeks after the start of the lease constitutes a transaction for VAT, and does not qualify as a transfer of a generality of goods (Article 37d).
Debt qualification of Perpetuals
The Dutch Supreme Court ruled that Fixed-to-Floating Perpetual Securities are treated as debt for Dutch tax purposes. The ruling confirms the clear rules around the qualification of debt, as formulated in earlier case law.
Tax article on Dutch TP case
Commentary (in Dutch) to an interesting Dutch TP case (Hof Den Bosch, 13 maart 2020, ECLI:GHSHE:2020:968), published in NL Fiscaal 2020/1121). The case is about a business restructuring and the arm's length character of the conversion remuneration.
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.