WTS in Netherlands

In an example, our colleagues from the Netherlands describe the field of tension in which the OECD regulations and Dutch tax laws on the deductibility of intra-company financing are currently moving.

As per 1 March 2020, service providers from the European Economic Area and Switzerland need to register new temporary assignments in the Netherlands ultimately 5 days before the start of employment online. 

The European Commission (EC) concluded an APA

Overview of the resulted transitional law

OECD Released Workplan

It is recommended to investigate the status of (possibly) existing permanent establishments in the light of the expected changes

Three members of the Dutch House of Representatives jointly prepared a legislative proposal that should limit the current liquidation loss scheme and the related cessation loss scheme

After consultation with the maritime sector, the changes were postponed until 1 January 2019

Summary of the VAT relevant topics

On Budget Day (18 September 2018), the Dutch government published the new tax measures for 2019 and beyond

Budget Day: Dutch government released its proposal to abolish the  dividend withholding tax of 15% as of 2020

The most important measures are the earnings stripping rules that limit the deductibility of interest and measures for controlled foreign companies (”CFC”)

Amendments aim to provide an equal treatment of domestic and cross-border EU situations for certain tax provisions

Report follows the final report on ‘Preventing the Artificial Avoidance of Permanent Establishments Status’

Amendment of Directive on Administrative Cooperation (“DAC”) 

Roadmap and attention points for the taxation of corporates in the future

 In its judgement, the CJEU followed the conclusions of the Advocate General (AG) of 25 October 2017

Decision could have a major impact on the applicability of anti-abuse provisions and substance requirements for holding companies within the EU, including the Netherlands

Public comments are invited on the discussion draft and should be submitted by September 7, 2018