08/November/2022

NL Tax Alert: ATAD2 decree updated for cost-plus situations

Yesterday, an updated ATAD2 decree has been published providing relief for a common situation in which anti-hybrid rules (ATAD2) resulted in double taxation. In case a disregarded Dutch subsidiary (NL BV) of a US parent receives a cost-plus remuneration from its US parent, the costs of NL BV result in a double deduction (in NL and the US). Based on the updated ATAD2 decree, in some situations, the cost-plus remuneration will be treated as dual inclusion income. The decree covers an example in which the cost-plus remuneration of NL BV relates to sales income taxable at the US parent level. Other situations are not described, but it is expected that the extent of the rule will be clarified via tax rulings.

Source: Staatscourant (PDF)

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