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How transfer pricing disputes are handled in the Netherlands and the relationship between transfer pricing and other tax codes.
The Dutch Ministry of Finance kicked off an internet consultation on a draft proposal (the “Draft Bill”) to amend the Dutch codification of the arm’s-length principle. Group companies operating in the Netherlands are recommended to review their existing advance pricing agreements and/or tax rulings as well as their transfer pricing policies to assess the impact of this proposed amendment of the arm’s-length principle.
In the Netherlands, the Dutch Ministry of Finance has published a draft proposal under which downward adjustments would be limited in order to address transfer pricing mismatches when applying the arm’s-length principle.
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