{"id":150508,"date":"2026-10-12T11:28:32","date_gmt":"2026-10-12T11:28:32","guid":{"rendered":"https:\/\/www.legal500.com\/guides\/?post_type=comparative_guide&#038;p=150508"},"modified":"2026-10-12T12:03:37","modified_gmt":"2026-10-12T12:03:37","slug":"the-netherlands-tax-disputes","status":"publish","type":"comparative_guide","link":"https:\/\/www.legal500.com\/guides\/chapter\/the-netherlands-tax-disputes\/","title":{"rendered":"Netherlands: Tax Disputes"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-150508","comparative_guide","type-comparative_guide","status-publish","hentry","guides-tax-disputes","jurisdictions-netherlands"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Lubbers, Boer &amp; Douma<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/www.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/09\/LBDlogo_Rechts.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Lubbers, Boer &amp; Douma<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/www.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/09\/LBDlogo_Rechts.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Tax Disputes laws and regulations applicable in Netherlands<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it necessary for a taxpayer to register with the tax authority? Are separate registrations required for corporate income tax and value added tax\/sales tax?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>Dutch resident<\/strong><\/p>\n<p>Individuals and entities carrying on a business are required to register with the Dutch Chamber of Commerce (Art. 5 jo. 6 Handelsregisterwet 2007). The same applies to legal entities which have their statutory seat in the Netherlands. The registration with the Dutch Tax Authorities for both corporate income tax (CIT) and value added tax (VAT) for these taxpayers is automatically provided for when registering with the Dutch Chamber of Commerce. No additional registration with the Dutch Tax Authorities is required. Individuals not carrying on a business are not required to register.<\/p>\n<p><strong>Non-Dutch resident<\/strong><\/p>\n<p>Non-resident taxpayers need to register with the Dutch Tax Authorities by submitting the prescribed registration form for corporate income tax (CIT) and value added tax (VAT).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In general terms, when a taxpayer files a tax return, does the tax authority check it and issue a tax assessment, or is there a self-assessment system where the taxpayer\u2019s own assessment stands unless the tax authority intervenes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Netherlands applies both a system of tax assessments imposed by the Dutch Tax Authorities and a system of self-assessment.<\/p>\n<p><strong>Tax assessment<\/strong><\/p>\n<p>Personal income tax (PIT), corporate income tax (CIT) and gift\/inheritance tax are all levied by way of a tax assessment imposed by the Dutch Tax Authorities. Taxpayers are required to file a tax return (Art. 6 AWR) after which the tax assessment is imposed by the Dutch Tax Authorities (Art. 11(1) AWR). The tax return \u2013 in combination with additional risk analytics and third-party information \u2013 functions as guidance to the Dutch Tax Authorities in imposing the tax assessment. The Dutch Tax Authorities are not bound by the tax return and can impose a tax assessment without the previous filing of a tax return (Art. 11(2) AWR). The formal amount of taxes due is stated in the tax assessment imposed by the Dutch Tax Authorities against which legal remedies are available (Art. 26(1)(a) AWR).<\/p>\n<p><strong>Self-assessment<\/strong><\/p>\n<p>Value added tax (VAT), regular dividend withholding tax (DWT), conditional interest\/royalty\/dividend withholding tax and wage tax are all levied by way of self-assessment. In this system, the tax return filed by the taxpayer states the formal amount of taxes due (Art. 19(1) AWR). Taxpayers can pursue legal remedies against the payment or withholding of the taxes due as stated in the filed tax return (Art. 26(2) AWR).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can a taxpayer amend their return after it has been filed? If so, are there any time limits for doing so?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>Tax assessment<\/strong><\/p>\n<p>Within the system of tax assessments (e.g., for PIT and CIT), taxpayers cannot amend their tax return after it has been filed. It is however possible for a taxpayer to provide further information in addition to the filed tax return if the tax assessment has not been imposed yet. The Dutch Tax Authorities must impose the tax assessment within a three-year period after the end of the taxable period or taxable event (Art. 11(3) AWR). The three-year period will be extended with any delay granted to the taxpayer for filing his tax return.<\/p>\n<p><strong>Self-assessment<\/strong><\/p>\n<p>Within the system of self-assessment (e.g., for VAT and wage tax), taxpayers and withholding agents can amend their tax return by filing a supplementary tax return. The filing of a supplementary tax return may be required if the taxpayer notices an error leading to an incorrect amount of taxes due or receivable (art. 10a(1) AWR).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please summarise the main methods by which a tax authority may challenge the amount of tax a taxpayer has paid by way of an initial assessment\/self-assessment. Does the tax authority need any justification to commence such a challenge?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>Tax assessment<\/strong><\/p>\n<p>The Dutch Tax Authorities are not bound by the tax return and can therefore deviate from it when issuing an initial tax assessment. Even if the DTA follows the tax return when issuing an initial tax assessment, it may still &#8211; under certain conditions &#8211; impose an additional tax assessment (Art. 16 AWR). An additional tax assessment can be imposed only if at least one of the following conditions is met: (i) facts arise which the Dutch Tax Authorities could not reasonably have known when imposing the initial tax assessment, (ii) the taxpayer acted in bad faith, (iii) the initial tax assessment results in an understated amount of taxes due to an incorrect credit of earlier provisional tax assessments and\/or withholding taxes or (iv) the initial tax assessment results in an understated amount of taxes due to an error of the Dutch Tax Authorities which is, within reason, clear for the taxpayer.<\/p>\n<p><strong>Self-assessment<\/strong><\/p>\n<p>The Dutch Tax Authorities can correct an underpaid amount of taxes by imposing an additional tax assessment (Art. 20 AWR).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the time limits for a tax authority to commence a challenge to the taxpayer\u2019s assessment\/self-assessment (disregarding any override of these limits to comply with obligations to provide relief from double taxation under a tax treaty)? Does a tax authority have any options to challenge a self-assessment after expiry of the relevant time limit?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p class=\"MarginText\"><strong>Tax assessment<\/strong><\/p>\n<p class=\"MarginText\">An additional tax assessment must be imposed within a five-year period after the end of the taxable period or taxable event (Art. 16(3) AWR). For CIT-purposes this results in the five-year period starting at the end of the tax year. The five-year period is extended with the delay granted to the taxpayer for filing the tax return. Furthermore, the five-year period is extended to a twelve-year period in situations where the taxable object is held abroad or the income has arisen outside of the Netherlands (Art. 16(4) AWR). Essentially, this provision is intended to apply in situations where the DTA can exercise insufficient controls.<\/p>\n<p class=\"MarginText\">The Dutch Tax Authorities cannot levy taxes in addition to the initial assessment after expiry of the time limit. By contrast, it is possible to grant an ex officio reduction of the taxes due after the expiry of the time limit (Art. 65 AWR).<\/p>\n<p class=\"MarginText\"><strong>Self-assessment<\/strong><\/p>\n<p class=\"MarginText\">An additional tax assessment must be imposed within a five-year period after the end of the taxable period or taxable event (Art. 20(3) AWR). The five-year period is under circumstances extended to a twelve-year period if the taxable event concerns the acquisition of the economic property of immovable assets or rights to which such property is subject (real estate transfer tax; Art. 20(4) AWR).<\/p>\n<p class=\"MarginText\">The Dutch Tax Authorities cannot levy taxes in addition to the self-assessment after the expiry of the time limit.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is tax fraud defined under the laws of your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Tax fraud (a criminal offence, Art. 69 AWR) is generally defined as (i) deliberately filing an incorrect or incomplete tax return, (ii) deliberately not filing an obligated tax return or (iii) deliberately providing incorrect information to the Dutch Tax Authorities, with the intention to underpay taxes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is tax fraud treated? Will the tax authority conduct a criminal investigation with a view to seeking prosecution and a custodial sentence?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Criminal investigations are conducted by the FIOD (tax police) under the supervision of the Public Prosecution Service (PPS). The Dutch Tax Authorities are bound by published policy which states under which circumstances tax fraud may be criminally prosecuted (Protocol AAFD). These circumstances include the amount of tax evaded, intent, recidivism, usage of false documentation and the public interest in criminal prosecution. Sentences may include financial penalties and\/or a custodial sentence.<\/p>\n<p>Instead of criminal prosecution, the DTA may issue a punitive sanction in the form of an administrative financial penalty which may not only be imposed in case of criminal intent, but also in case of gross negligence when an additional tax assessment is imposed. These penalties are often imposed in combination with a tax assessment. Generally, the amount of the penalty is a percentage of the amount of taxes (potentially) evaded. In principle, a penalty of 50% is imposed if the tax return was intentionally incorrect (\u00a725(3) BBBB) and a penalty of 25% is imposed if in case of gross negligence (\u00a725(2) BBBB). In case of aggravating circumstances, the penalty may be increased to a maximum of 100% or to a maximum of 300% in cases concerning personal income tax on income from savings and investments (\u00a78 BBBB). Administrative penalties can be challenged with the tax court which is also competent for the tax assessment itself.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the tax authority have to abide by any standards or a code of conduct when carrying out audits? Does the tax authority publish any details of how it conducts audits in practice?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, the Dutch Tax Authorities need to abide by all legal provisions and the general principles of good administration when carrying out audits, such as the duty of care, proportionality, fair play and legitimate expectations. The DTA has published a manual in this regard which must be respected by all tax inspectors carrying out an audit (Handboek Controle Belastingdienst). This manual provides detailed guidance on how the Dutch Tax Authorities should conduct their audits.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the tax authority have the power to compel the production of information? Does this extend to emails? Is there a right of appeal against the use of such a power?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, the Dutch Tax Authorities have the power to compel taxpayers to provide information which may be of foreseeable relevance in determining the amount of taxes due (Art. 47(1) AWR). This includes, among other things, annual accounts, contracts, letters and e-mails insofar directly relevant to the case.<\/p>\n<p>The obligation to provide information does not apply to information which is protected by legal privilege (e.g. the legal privilege of an attorney-at-law). The obligation is further limited by the principle of fair play which stipulates that the DTA has no right to request tax and legal advice. This means that the DTA may request factual documentation, excluding documentation regarding legal advice or a taxpayer\u2019s legal status. It is up to the attorney, the tax adviser and\/or the taxpayer to distinguish between information covered by legal privilege \/ the principle of fair play and factual information.<\/p>\n<p>Persons subject to record-keeping obligations are required to maintain records regarding their financial position and all matters concerning their business, independent profession, or activity and to preserve the associated books, documents, and other data carriers (Art. 52(1) AWR).<\/p>\n<p>Specific legal provisions may require the taxpayer or withholding agent to provide information spontaneously (i.e. without request), for example if that information is relevant for the levying of conditional withholding tax (on dividends, interest and royalties).<\/p>\n<p>It is not possible to file an objection against the information request of the Dutch Tax Authorities itself. The Dutch Tax Authorities have the possibility to issue an information decision if the taxpayer does not provide the information requested (Art. 52a(1) AWR). The decision reverses the burden of proof to the taxpayer and aggravates the burden of proof. In addition, non-compliance with an information decision may lead to criminal prosecution. It is possible to file an objection and subsequent appeal against an information decision.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the tax authority have the power to compel the production of information from third parties? Is there a right of appeal against the use of such a power?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, the Dutch Tax Authorities may request third parties to provide information which may be of foreseeable relevance in determining the amount of taxes due of another taxpayer (53(1) AWR). This obligation is limited to (legal) persons which are obligated to keep an administration (52 AWR). In case of non-compliance by a withholding agent in this capacity, the DTA may issue an information decision (see question 9 above). In other situations, no information decision can be issued. In such a case, the DTA may approach the civil courts with the request to compel the third party to produce the requested information.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to settle an audit by way of a binding agreement, i.e. without litigation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>It is possible to settle an audit by way of a binding settlement agreement. The taxpayer and the Dutch Tax Authorities can enter into such an agreement in case of uncertainty about facts and\/or law and in case of a dispute. The settlement agreement is an agreement under civil law which is binding on both parties, providing a settlement without litigation.<\/p>\n<p>The Dutch Tax Authorities are bound by published policy which establishes further conditions for entering into a settlement agreement (\u00a726 BFB). This policy prohibits the Dutch Tax Authorities to enter into an agreement which is evidently contrary to the law or to standing policy.<\/p>\n<p>The settlement agreement generally includes a waiver of a taxpayer&#8217;s right to file an objection or appeal concerning the dispute settled in the agreement. The taxpayer however retains its right to file an objection or appeal concerning the legal validity of the settlement agreement itself.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If a taxpayer is concerned about how they are being treated, or the speed at which an audit is being conducted, do they have any remedies?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Taxpayers are limited in their legal remedies against the way they are being treated or the speed at which an audit is being conducted. In specific situations a remedy may exist, for example if the taxpayer has filed an objection and the Dutch Tax Authorities fail to issue a decision within the applicable statutory period. In that case, the taxpayer can issue a notice of default and if the Dutch Tax Authorities do not issue such decision within two weeks after the notice of default, the taxpayer can lodge an appeal with the tax court (Art. 6:12(2) Awb).<\/p>\n<p>If a taxpayer feels that the DTA is treating him improperly, he may file a formal complaint with the DTA. Subsequently, the taxpayer may approach the National Ombudsman (Art. 9:20 Awb).<\/p>\n<p>In addition, taxpayers can challenge procedural irregularities in their objection or appeal against the tax assessment imposed or against other appealable decisions of the Dutch Tax Authorities.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If a taxpayer disagrees with a tax assessment, do they have a right of appeal?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Taxpayers have the right to file an objection with the Dutch Tax Authorities against a tax assessment (or against a payment in cases of self-assessment). The objection must be filed within a six-week period after the issuing date of the tax assessment or the payment date. The main rule is that the Dutch Tax Authorities need to issue a decision on the objection within a six-week period. The taxpayer has the possibility to lodge an appeal against the decision on the objection with the competent tax court within a six-week-period.<\/p>\n<p>The filing of an objection is generally possible against all tax assessments, including self-assessments and (payments on) additional tax assessments. Objections against preliminary tax assessment are generally not possible, although taxpayers may in general request a revision of the provisional assessment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the right of appeal to an administrative body (independent or otherwise) or to a judicial body (i.e. a tribunal or court)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Dutch law provides different legal remedies to a taxpayer which need to be applied in the following order: (i) objection with the Dutch Tax Authorities, (ii) appeal with the District Court, (iii) appeal with the Court of Appeal, (iv) appeal with the Supreme Court.<\/p>\n<p><strong>Objection with the Dutch Tax Authorities<\/strong><\/p>\n<p>The first legal remedy is the possibility to file an administrative objection with the Dutch Tax Authorities. The objection requests a revision of the original decision \u2013 i.e. tax assessment or payment in case of self-assessment \u2013 by the Dutch Tax Authorities. Taxpayers may provide both factual and legal arguments to substantiate their objection. The objection results in a decision on the objection by the Dutch Tax Authorities, after an oral hearing.<\/p>\n<p>The taxpayer may request to skip the objection phase and to approach the District Court directly. Such a request may for instance be made in situations where the taxpayer and the DTA have already been in substantive discussions prior to the issuance of the tax assessment.<\/p>\n<p><strong>Appeal with the District Court and Court of Appeal<\/strong><\/p>\n<p>The second legal remedy is the possibility to lodge an appeal with the District Court against the decision on the objection. The District Court provides an independent judiciary review of the tax assessment. Taxpayers may provide both factual and legal arguments to substantiate their appeal. The appeal results in a judicial decision.<\/p>\n<p>The third legal remedy is the possibility to lodge an appeal with the Court of Appeal against the judicial decision of the District Court. The Court of Appeal provides another judicial review of the tax assessment. As with the District Court, taxpayers may provide both factual and legal arguments to substantiate their appeal. The appeal results in a judicial decision.<\/p>\n<p>If both the taxpayer and the State Secretary for Finance agree, the Court of Appeal may be bypassed and the Supreme Court may be approached directly.<\/p>\n<p><strong>Appeal with the Supreme Court<\/strong><\/p>\n<p>The final legal remedy is to lodge an appeal against the judicial decision of the Court of Appeal with the Supreme Court. The Supreme Court is a cassation court which only hears explicit complaints on point of law. The appeal results in a final judicial decision.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the hearing in public? Is the decision published? What other information about the appeal can be accessed by a third party\/the public?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>All tax proceedings \u2013 both objections and appeals \u2013 have non-public hearings. However, the hearing with the court is in principle public to the extent in which an administrative penalty is in dispute. Decisions on objections are not published. Judicial decisions by the tax courts are anonymized and published on uitspraken.rechtspraak.nl. Judicial decisions with little to no importance to third parties or the public will normally not be published.<\/p>\n<p>Third parties or the public will in general be able to access the anonymized judicial decisions of the tax courts only. Additionally, anonymized versions of notices of appeal filed with the Supreme Court will be published and therefore be accessible for third parties or the public.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the procedure mainly written or a combination of written and oral?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The tax procedure is mainly a written procedure, supplemented by oral hearings. Taxpayers have the possibility to clarify their objection in an oral hearing with the Dutch Tax Authorities. This oral hearing includes the right to consult the documentation available to the Dutch Tax Authorities when imposing the tax assessment or thereafter.<\/p>\n<p>The appeal with the District Court and the Court of Appeal generally includes an oral hearing during which both the taxpayer and the Dutch Tax Authorities can clarify their arguments. The oral hearing also provides the possibility for the tax court to question the parties involved.<\/p>\n<p>The appeal with the Supreme Court could, on request, also include an oral hearing although this is exceptional. The possibility of this oral hearing is more restricted than the oral hearings with the other tax courts since only attorneys-at-law admitted to the Dutch bar are allowed to plead before the Supreme Court.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a document discovery process?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Taxpayers have limited options to discover documents of the Dutch Tax Authorities. As described in question 16, the oral hearing in objection includes the taxpayer\u2019s right to consult all documents available to the Dutch Tax Authorities at the time of the tax assessment or thereafter.<\/p>\n<p>The taxpayer could request a preliminary injunction with the tax court if he considers the documents made available by the Dutch Tax Authorities in the objection phase to be incomplete. In such a procedure, the tax court can order the Dutch Tax Authorities to provide the missing documentation. The taxpayer needs to provide sufficient details regarding the documents which he considers to be missing and there needs to be an urgent interest (normally, this condition will be met).<\/p>\n<p>The Dutch Tax Authorities are furthermore required to submit to the tax court all documents which are relevant for the dispute and available to them at any time during the litigation. Taxpayers may request the court to order the production of additional relevant documents if the Dutch Tax Authorities have not provided these documents.<\/p>\n<p>The DTA may request the tax court not to disclose to the taxpayer certain information, documents or parts of documents if there are compelling reasons for the non-disclosure (e.g. protection of confidential or strategic information) and the taxpayer\u2019s right to a fair trial is safeguarded. A separate chamber of the tax court will decide on such a request.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are witnesses called to give evidence?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, it is possible for both the taxpayer and the Dutch Tax Authorities to call for witnesses to give evidence before the court. In the Netherlands, this form of evidence is not very common in tax proceedings. The tax court will form its decision on the basis of all oral and \u2013 mostly \u2013 written evidence made available to it.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the burden of proof rest with the taxpayer on an appeal against an assessment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In tax proceedings, the burden of proof is divided \u2018reasonably\u2019. This means that, in general, the burden of proof rests with the party which claims the legal effect of his or her statement. This results in the burden of proof resting on the Dutch Tax Authorities regarding the parts of the tax assessment which increase the amount of taxes due (e.g. taxable income). The burden of proof of parts of the tax assessment which reduce the amount of taxes due (e.g. deductions or exemptions) rests with the taxpayer. Exceptions to these rules may apply, for instance in situations where it is impossible for one party to produce evidence and very well possible for the other party. What counts is a reasonable allocation of the burden of proof.<\/p>\n<p>As noted in question 9, the burden of proof may in some situations be reversed and increased from the Dutch Tax Authorities to the taxpayer, particularly in situations where an information decision has been issued.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How long does an appeal usually take to conclude?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The exact duration of tax proceedings depends on several factors such as the complexity of the case and the workload of the tax court. The average duration of an appeal procedure before the District Court or before the Court of Appeal is two years per court. Complex cases tend to take over three years before the Supreme Court.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the taxpayer have to pay the assessment pending the outcome of the appeal?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In principle, the taxpayer has to pay the tax assessment pending the outcome of the objection or appeal, but the filing of an objection against a tax assessment automatically qualifies as a request for deferment of payment based on published policy and is generally granted automatically. Lodging an appeal does not automatically imply a request for deferment of payment. The taxpayer therefore needs to file a separate request for deferral of payment with the Dutch Tax Authorities when lodging an appeal with the tax court.<\/p>\n<p>Deferment of payment will only be granted for the disputed amount of taxes (\u00a7 25.2.3. Leidraad Invordering). Simple interest is due on the amount of taxes due after expiration of the regular term of payment of one month (Art. 28(1) IW 1990). The current interest rate is 4.3% since January 1, 2026.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on who may conduct or appear in the appeal on behalf of the taxpayer?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no restrictions on the representation of the taxpayer in the appeal. The taxpayer may be represented either by himself or by any other person during the appeal (Art. 2:1(2) Awb). Normally, such a representative is a tax advisor or attorney-at-law. Generally, tax courts will request a power of attorney (8:24(2) Awb), except for attorneys-at-law who are deemed to possess such a power (8:24(3) Awb). Another difference between representation by a person who is not an attorney-at-law and an attorney-at-law is that only attorneys-at-law are allowed to plead before the Supreme Court (see question 16).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a cost-shifting system whereby the losing party pays the winning party\u2019s legal and professional costs of an appeal?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, there is a cost-shifting system although this system does not provide comprehensive cost-shifting. The taxpayer will be granted a compensation for his legal and professional costs if the objection (Art. 7:15(2) Awb) or appeal (Art. 7:28(2) Awb) is successful. The compensation is generally calculated based on fixed amounts which are laid down in lower law. A full compensation of legal and professional costs is exceptional and is only granted if the Dutch Tax Authorities acted in an extensively negligent manner. In practice, the taxpayer does not need to pay any compensation when the objection or appeal is unsuccessful.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to use alternative forms of dispute resolution, such as voluntary mediation or binding arbitration? Are there any restrictions on when such alternative forms of dispute resolution may be pursued?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Dutch tax law does not provide for alternative forms of dispute resolution between a taxpayer and the Dutch Tax Authorities. However, in practice alternative ways of dispute resolution are available, such as settlement agreements (vaststellingsovereenkomsten). Meditation is also available, but not common for corporate taxpayers.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a right of onward appeal? If so, what are the levels of onward appeal before the case reaches the highest appellate court?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, there is a multi-tier system of appeal (see question 14).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the main penalties that can be applied when additional tax is charged? What are the minimum and maximum penalties?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Dutch Tax Authorities can impose two kinds of administrative penalties. The first category concerns administrative penalties which are mostly imposed because of omissions made by the taxpayer (e.g. late filing of a tax return or a late payment). The minimum administrative penalty is EUR 165 (2026) and the maximum administrative penalty is EUR 6,709 (2026).<\/p>\n<p>The second category concerns punitive administrative penalties which are imposed when an underpayment of taxes is due to intent or gross negligence (in case an additional tax assessment is imposed). The amount of such a penalty is a percentage of the amount of (potentially) underpaid taxes (see question 7).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If penalties can be mitigated, what factors are taken into account?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Administrative penalties may be reduced if there is a mismatch between the significance of the offence and the penalty to be imposed or the circumstances in which the offence is committed (Art. 5:46(2) Awb). In this respect, the State Secretary for Finance has published policy rules which are binding for the DTA. A mismatch between the significance of the offence and the penalty to be imposed is present if the relation between these two factors does not meet the test of proportionality (\u00a77(3) BBBB). Circumstances which could reduce the penalty to be imposed are the extent to which the taxpayer took precautions to prevent the offence (\u00a77(4) BBBB) and the financial situation of the taxpayer (\u00a77(5) BBBB).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Within your jurisdiction, what areas do you think are most likely to be subject to challenge over the next 12 months?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>One of the most important subjects to be challenged are the developments in the doctrine of abuse of law (tax abuse). Recent case law of the Supreme Court strengthens the Dutch Tax Authorities in combatting abuse of law, for instance in the area of (exemption of) dividend withholding tax on dividends paid to foreign companies. Another relevant development in this area is the case law and proposed statutory provisions to counter dividend tax arbitrage. The national doctrine of abuse of law in the area taxation is furthermore heavily influenced by case law of the Court of Justice of the European Union and EU-Directives. It should be expected that the notion of tax abuse will be subject to further challenge in the next twelve months.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In your opinion, are there any areas that taxpayers are currently finding particularly difficult to deal with when faced with a challenge by the tax authorities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The current development in combatting tax abuse (see question 28) combined with the increasing interaction between domestic law, EU-law and international developments (e.g. OECD Standards) lead to increasing complexity of tax disputes and legal uncertainty, especially for multinational enterprises, for example regarding transfer pricing disputes, credit of dividend withholding tax and interest deduction.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">4814<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/150508","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=150508"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}