ARTICLE · 18 NOVEMBER 1996
Introduction Of A Favourable Group Finance Regime
NetherlandsAccounting and Audit
INTRODUCTION
On April 23, proposed legislation was sent to the Dutch Parliament which includes measures of great importance for the Dutch business community. These measures, previously announced on January 29, 1996, include, amongst other items, a finance risk reserve for international groups.
Following the approval by Parliament, the bill became effective as from 1 January 1997.
This note provides for a general description of this new regime.
RISK-RESERVE FOR INTERNATIONALLY OPERATING COMPANIES
A Dutch resident entity or branch which is part of an international group may, upon request, form a risk-reserve for specific risks associated with its international operations. The risk-reserve is meant for risks relating to finance activities and the holding of foreign participations or branches. To qualify for the facility, it is not necessary for the finance activity to be the sole activity of the Dutch entity, nor is it necessary to incorporate an entity for that purpose.
We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.
