From The Netherlands: Dutch Corporate Tax Grouping Opportunities
Andersen Tax & Legal, the Dutch Member of Andersen Global
Dutch corporate tax grouping opportunities
If you have any clients with Dutch group companies at different levels or within different divisions in their corporate structure, there may be an opportunity to include those Dutch group companies in a tax consolidation regime for Dutch corporate income tax purposes. The Dutch corporate tax consolidation regime allows Dutch group companies (in at least 95% ownership chains) to offset taxable profits and losses, and facilitates tax-neutral business reorganizations. The Dutch corporate tax consolidation regime is already open to Dutch group companies which are (indirectly or jointly) held via intermediate holding companies that are established in the European Union (EU)/European Economic Area (EEA). Based on recent (lower court) Dutch case law, further Dutch tax grouping opportunities may also become available where Dutch group companies are (indirectly or jointly) held via intermediate holding companies established in the non-EU/non-EEA jurisdictions with which the Netherlands has concluded a tax treaty.
Import VAT deferment license
If you have any clients distributing and importing products into Europe, please be aware that the Netherlands is recognized as being the gateway to Europe. The Netherlands has an excellent infrastructure, as evidenced by its award-winning Amsterdam Airport (Schiphol) and its port in Rotterdam (Europe’s largest port). Import Value Added Tax (VAT) is generally due “at the border," i.e., upon the moment of import of goods into Europe. However, the Netherlands is one of the few countries within Europe that permits a VAT import deferment license. Such license may provide significant cash-flow benefits for your clients. Instead of import VAT becoming due immediately upon the moment of importation, this license allows a company (“the importer of record”) to defer the import VAT payment liability. Based on this license, the import VAT only needs to be accounted for in the Dutch VAT return. As the Dutch VAT return can be filed with the Dutch tax authorities at a later point in time and the company is generally able to deduct the import VAT in the same VAT return, on balance, no cash-flow disadvantage occurs for clients with an import VAT deferment license.
Please contact an Andersen Tax & Legal, The Netherlands for more information.