On 1 July 2022, the Netherlands Ministry of Finance issued Decree No. 2022-0000139020 related to the application of the arm’s length principle and the OECD transfer pricing guidelines. The New Decree replaces the previous transfer pricing (TP) Decree No. 2018-6865 and reflects the most recent changes in the OECD’s TP Guidelines for Multinational Enterprises and Tax Administrations.

Particularly, the new decree focuses on recent developments that have led to changes in the OECD guidelines, but also reflects the effects of the COVID-19 pandemic. Changes from the previous decree include:

  • Significant amendments of the section on financial transactions
  • Amendments to the section on intra-group services
  • Extension of the section on government policy to include a provision on support measures from the government in response to the COVID-19 pandemic
  • Further details on the transfer pricing of financial transactions, such as loans, cash pooling and guarantees, to reflect the guidance included in Chapter X of the OECD guidelines but also on the remuneration for financial intermediaries, which replaces the prior guidance included in a separate decree till now.

Besides the above main changes, the new Decree also includes a revised section on documentation obligations (now Section No. 10), which more clearly specifies the CbC report, Master file, and Local file requirements, and the separate Article 8b TP documentation obligations.

The new Decree entered into force on 2 July 2022.