News and Insights

Dutch Government Confirms Positive Attitude Towards International Tax Structuring Through the Netherlands

Tax Development Jan 30, 2013

This week, the State Secretary of Finance, Mr. Weekers confirmed in Dutch parliament that the Netherlands will not seek to take additional measurements against the Netherlands in international tax structures. The Netherlands has always been and remains an attractive location for foreign companies. The extensive Dutch tax treaty network and the approachability of the (tax) authorities play a crucial role in this respect.

Mr. Weekers stated that: international tax evasion is an international issue. The Netherlands will not and should not act on its own to counter evasive international tax structuring. Mr. Weekers confirmed that the aim of the Netherlands remains to attract international companies that will have substance (employees, active business etc.) in the Netherlands. The already existing legislation mitigating Dutch tax benefits to a certain extent for mere mailboxes should be sufficient and will not be extended.

Moreover, the Dutch government confirms that it has no intention whatsoever to counter the use of the Netherlands in beneficial royalty structures (the Netherlands does not have a royalty withholding tax). 

The discussions in Dutch parliament took place as a result of the commotion in the UK where companies like Starbucks and Google (amongst other) were in the news for not paying their fair share of taxation in the UK. In sum, Mr. Weekers confirmed that the Netherlands continues to tax entities on the basis of Dutch and international tax principles, implying that the Netherlands continues to remain an attractive and stable location for vehicles to establish themselves for finance- or holding companies and royalty structures for the years to come.

Suzanne C. den Breems
+31 (0) 72 540 1202