The Deputy Minister of Finance in late June 2019 published a policy statement elaborating on the revised ruling policy for “rulings with an international character.”
The policy statement replaces three previous ruling policy statements (dated June 2014) and is effective 1 July 2019. The revised policy statement is aimed at further safeguarding the quality of the ruling practice for businesses with activities of substance.
The main features of the revision of the ruling practice were previously provided in a draft the policy statement. Read TaxNewsFlash
The final policy statement is substantially similar to the draft policy statement. In general, the procedure under the revised policy statement is as follows:
The new policy statement measures mean in any situation that taxpayers/groups that only establish themselves in the Netherlands for tax reasons and have no further economic nexus with the Netherlands will no longer obtain a ruling from the Dutch tax authorities. The “economic nexus” concept most likely means that the threshold for obtaining advance certainty will in all cases be higher than was the case based on the list of substance requirements. The Deputy Minister previously confirmed that, given that the law will not change as a result of the new policy, the fact that rulings will no longer be concluded for certain arrangements does not mean that these arrangements will disappear. Rulings issued before 1 July 2019 do not fall under the new policy.
Read a July 2019 report prepared by the KPMG member firm in the Netherlands
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