A letter to the Upper House of Parliament (Eerste Kamer) from the Dutch Finance Minister has presented clarifications of the Dutch tax system in the light of the recent OECD report on base erosion and profit shifting and the steps taken by the G8 and G-20 and also the European Union.
The Minister clarified that companies set up in the Netherlands as connections in a international group were obliged to pay corporate income tax in the Netherlands on the same terms as all other companies. These companies could be obliged to reveal information asked for by the tax authorities in the Netherlands to figure out if they were qualified to claim benefits under a double tax treaty. Netherlands is constantly ready to exchange information as provided in the double tax treaty on the demand of a treaty partner, where this disclosure is essential for the proper imposition of tax.
