Introduction Of New Reporting Requirements For Certain Intra-Group Lending, Licensing, And Leasing Activities

Beginning on January 1, Dutch companies that are predominantly involved in intra-group back-to-back lending, licensing, or leasing transactions and that seek benefits under a tax treaty or the EU Interest & Royalty Directive with respect to their income must report in their tax return that they meet certain minimum substance requirements. If not all requirements are met, the Netherlands will exchange information with source countries. The new substance requirements are the following:

• At least 50 percent of the statutory directors with the authority to vote on the board is Dutch resident, with sufficient knowledge to carry out their duties;
• The company should have sufficient staff—employed by the company or hired from a third party—to carry out its activities