Netherlands: Tax plan focuses on reducing the tax burden on labour
The 2015 Tax Plan focuses on alleviating the tax burden on labour. A sum of €1 billion has been made available for this purpose, which will be used to reduce the lowest rate of income tax and increase the employed person’s tax credit in order to
See MoreNetherlands: 2015 Budget Memorandum
The Netherlands is slowly recovering from the crisis. Exports, corporate investments and consumption are all increasing. Economic growth in 2015 is projected at 1.25%. But the recovery is fragile and at risk from international developments.
See MoreNetherlands has signed a letter of intent with St Maarten and Curacao
On July 9, 2014, the Netherlands has reached an agreement with St Maarten and Curacao on a bilateral arrangement to replace the existing Tax Regulation to prevent double taxation and counteract tax evasion. Representatives of the Netherlands and St.
See MoreNetherlands Agrees to Amend the Russian DTA
The Netherlands are to begin negotiations with Russia to amend the double taxation agreement (DTA) concluded in 1996, with a first round of negotiations expected to be held in June 2014. Russia has asked for a revision to the agreement to bring it
See MoreSpanish Supreme Court confirms the minimum participation withholding rate for application of Spain-Netherlands tax treaty
The Spanish Supreme Court issued a decision on 6 March in relation to application of the double tax agreement between Spain and the Netherlands signed on 16 June 1971. The Court confirmed that the 5% reduced rate for withholding tax under the DTA
See MoreNetherlands – Dutch taxpayer liable for Swiss captive subsidiary’s profits
A recent decision by a district Court in the Netherlands involved a Swiss captive insurance company that did not have any employees. The Court reached the decision that the tax authorities in the Netherlands were correct in levying tax on a related
See MoreNetherlands – Advocate General’s opinion on sister company tax consolidation
The Advocate General of the Court of Justice of the European Union (CJEU) has found that the Dutch tax rules are in breach of the freedom of establishment in that the rules deny tax consolidation (fiscal unity) between— A Dutch parent company
See MoreNetherlands Simplifies Individual Tax Filing
Commencing from March 1 2014, the Netherlands tax administration will issue approximately six million pre-completed tax forms to individuals, and around four million tax returns that have been completed in part. The taxpayers are requested to verify
See MoreNetherlands: Important changes in the treatment of VAT offences
From 1 January 2014, the eventual submission of a correct VAT return in the Netherlands will no longer prevent prosecution where the return has been filed late. Prior to 1 January 2014, the late, or non-filing of VAT returns was classified as a
See MoreProtocol between the United Kingdom and the Netherlands is in force
The DTA Protocol signed between the United Kingdom and the Netherlands entered into force on January 31, 2014. The provisions of the Protocol have effect: in the United Kingdom: in respect of income tax and capital gains tax, for any year of
See MoreNetherlands amends the preliminary tax assessment procedure
The amendments to article 23(2) of the Implementing Regulations of the 1994 General Tax Law relating to the issuance of preliminary tax assessments were published in the Official Gazette, No. 2405 . The amendments are summarized below. Under the
See MoreDTA between Malawi and Netherlands terminated
Malawi has terminated the double taxation agreement (DTA) previously in force between Malawi and the Netherlands. The termination takes effect in the Netherlands from 1 January 2014 and in Malawi from 1 April
See MoreNetherlands – Dividend withholding tax when companies located in Curaçao
The Advocate General of the Court of Justice of the European Union (CJEU) issued an opinion in two joined cases that involve profit distributions made by Dutch companies to their parent companies that are residents of Curaçao. The opinion of the
See MoreNetherlands – Distinction between loan interest and dividend
The Netherlands Supreme Court (Hoge Raad) on 7 February 2014 issued two decisions affecting taxpayers. The first decision related to whether a payment would be regarded as interest on a loan or as a participation dividend paid on a share capital
See MoreNetherlands – Revised rules for employing foreign workers
A new law in the Netherlands (“Foreign Nationals Employment Act”), effective from 1 January 2014, concerns changes to the current labor market rules. The new law was followed by a re-write of the implementation rules. The law generally affects
See MoreNetherlands – Planned pension changes
On 20 January 2014, a proposal was presented to amend pension accrual rates and impose a limit on “pensionable” income. The following measures are included in the proposed amendments: An adjustment to the maximum pension accrual rates; A cap
See MoreNetherlands: New Decree on substance requirements enters into force
From 1 January 2014, a new Decree entered into force which codifies the existing administrative guidance on substance requirements for companies engaged in inter company financing and/or licensing activities. Now, Dutch companies that claim the
See MoreNetherlands: Relief, clarifications under FATCA
The Netherlands government has announced completion of a memorandum of understanding (MOU) to provide relief and clarify the intergovernmental agreement (IGA) for automatic exchange of data between the Netherlands Belastingdienst and the US IRS. The
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