The Dutch Government intends to renew its tax treaty policy and to draw up a list of low-taxing jurisdictions. In this respect the Dutch Ministry of Finance opened a public consultation on September 25, 2018. The closing date for submitting input is October 22, 2018.

Interest groups, employers' organizations, (international operating) companies, tax advisers, scientists, NGOs and all other interested parties are invited to provide input.

 

Dutch list of low-taxing jurisdictions

The Netherlands plans to place the following states on the list of low-taxing countries in 2019:

·   Anguilla;

·   Bahamas;

·   Bahrain;

·   Bermuda;

·   British Virgin Islands;

·   Guernsey;

·   the Isle of Man;

·   Jersey;

·   the Cayman Islands;

·   Kuwait;

·   Palau;

·   Qatar;

·   Saudi Arabia;

·   Turks and Caicos Islands;

·   Vanuatu; and

·   the United Arab Emirates.

 

According to the Dutch Ministry of Finance these are non-taxing jurisdictions or jurisdictions with a rate of less than 7%. Through the consultation, stakeholders are given the opportunity to share their knowledge about the tax systems of other jurisdictions before the list is definitively established. This way it can be prevented that countries are incorrectly included or not included in the list. After 2019, the list will be updated annually and redefined.

The list will be used for two (proposed) measures in the fight against tax avoidance and evasion. This also applies to states that are included on the EU-list of tax havens (list of non-cooperative jurisdictions).

·   The CFC measure that was proposed by September 18, 2018 and of which it is the intention that it will take effect on January 1, 2019.

·   The list will also be used for the introduction of a conditional withholding tax on dividends (as of January 1, 2020) and interest and royalties (as of January 1, 2021). (NB on September 18, 2018 the Dutch Cabinet sent draft legislation in this respect to the House of Representatives)

 

Renewal of the tax treaty policy

The Dutch Ministry of Finance furthermore states that the tax treaty policy is in need of renewal on a number of points. Via the consultation everyone can also give his or her view. The Dutch Government for example wants the treaties to fit in well with the measures that have been proposed to ensure that no tax can be avoided. This is particularly the case when there is a tax treaty with jurisdictions that will be included on the list of low-taxing jurisdictions. The allocation of levying rights between the Netherlands and developing countries is also the subject of the consultation (based on a new UN Model Convention). The Ministry of Finance states that it is also open to input in relation to other matters relating to the Dutch tax treaty policy.

 

·   Click here to download the consultation document from the website of the Dutch Government;

·   Click here to download annex 1 to the consultation document (Renewal of the tax treaty policy) from the website of the Dutch Government; and

·   Click here to download annex 2 to the consultation document (Drawing up a list of low-taxing jurisdictions) from the website of the Dutch Government.

 

Via this link you can submit your input (the link forwards you to the consultation website of the Dutch Government). 

 

Although this seems to be a subject that might need input from international (tax) specialists, it unfortunately seems that the consultation document and the annexes are only available in the Dutch language.

 

 

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