Dutch Bill For Improvement Of The Business Climate Effective

Introduction

In December 1996 bill number 24 696 was adopted by Dutch parliament. The new legal provisions apply as of the calendar or financial year commencing on or after January 1, 1997. The new legal measures can be divided into two categories. The first is a category of regulations aimed at the improvement of the Netherlands business climate. The second category of measures is directed against improper erosion of the taxable base.

On the one hand the published parliamentary documents are very detailed (especially where the group finance facility is concerned) but on the other hand they do not always provide full clarity. Furthermore, a number of essential issues still need to be regulated by the Ministry of Finance. This applies in particular to the functional currency facility.