New withholding tax rules for Dutch Coops, BVs and NVs

Currently, Dutch BVs/NVs are as a general rule subject to Dutch withholding tax (“DWT”), whereas Dutch cooperatives (“Coops”) are not.

On May 16, 2017, the Dutch Ministry of Finance published a legislative proposal which aims to abolish the different treatment of Coops and Dutch BVs/NVs for DWT purposes. This is achieved on the one hand by introducing a full DWT exemption for qualifying BVs and NVs, and on the other hand by introducing a DWT obligation for certain ‘Holding Coops’. Read more

The untamable thirst for tax transparency

The war on tax evasion is a trending topic, especially following affairs such as the Lux-leaks and Panama Papers. A couple of weeks ago, the emotions were running high again in the Dutch parliament during a debate on tax evasion.

The focus of the debate was on tax rulings. In short, a tax ruling is an agreement in which the Tax Authorities confirm the application of the relevant tax laws to a specific situation. Rulings therewith provide companies with certainty in advance about their tax position, and have been a frequently used tool to attract foreign companies to the Netherlands. Read more