It was reported on 17 December 2012 that the Dutch Second Chamber has recently approved a bill submitted by the Financial State Secretary amending existing legislation pertaining to exit tax. The bill provides companies electing to relocate abroad with the choice as to when to settle their final tax bill with the Dutch tax authorities.
In accordance with the bill, the final tax bill must not now have to be paid immediately upon departure. Corporations may opt for deferred payment of the so-called “exit tax”, provided that a bank guarantee is in place. Interest will also be charged. Taxpayers also have the option of paying the tax due in ten equal installments.
Exit tax is payable by companies relocating their actual headquarters to another European Union (EU) member state and is based on the value of assets at the point of departure.
The European Commission has previously expressed the view that national exit taxes should not impose an immediate tax on unrealized assets if residents of the country do not normally pay tax until gains on assets are realized. The ECJ has ruled that an arrangement offering a taxpayer the choice between paying the tax immediately and deferring payment would be suitable, with member states of departure allowed to demand a bank guarantee.
