From the Netherlands: Additional Dutch Substance Requirements Proposed
Maarten van den Beucken, Ruben van Aarle or Diederik Hauser - Andersen Tax & Legal in the Netherlands, a member firm of Andersen Global
On February 23, 2018, the Dutch State Secretary of Finance published a letter proposing (additional) Dutch substance requirements (including a minimum-€100,000-wage-cost-criterion and 24-months-office-space-criterion) for Dutch holding companies in international structures and Dutch financial services companies. Many multinationals have group structures including Dutch holding companies or Dutch financial services companies. This development may increase costs for maintaining a Dutch group company. With its extensive and favourable tax treaty network and bilateral investment treaty network the Netherlands remains an attractive holding jurisdiction. Therefore, we recommend clients to review the impact of the proposed changes on their group structure and, if needed, explore alternatives for ensuring a sustainable and cost efficient Dutch holding structure going forward (e.g. by centralizing substance in the Netherlands or by engaging in Dutch group simplification restructurings to reduce the number of Dutch group companies and ease substance compliance requirements).
Please click here for more information on these developments.