The advantages of non-public companies under the Dutch GAAP compared to companies under IFRS

By Announcements, News

On Thursday April 22, the webinar of KC Accounting/ FinExpertiza Netherlands took place, where a Business advisor/ Accountant Rutger Koelewijn participated as invited speaker.

During the event the speaker discussed the advantages of non-public companies under the Dutch GAAP compared to companies under IRS. Also Rutger defined a company Small Size under Dutch GAAP, discussed its advantages compared to Medium Size and Large Size and compared to IFRS. Next, the speaker named the exemptions under Dutch GAAP and introduced a real life case followed by two examples from his professional practice. Finally, an expert answered the questions from the audience.

Find out more: 

A Business Advisor / Accountant, Rutger Koelewijn :

Email: [email protected]




Instagram: @kclegalnl




#doingbusinessinthenetherlands  #financenetherlands # kclegal # immigration # labormigration

Update on Russian – Dutch Tax Agreement

By News, Tax

The most salient topic of today’s agenda is related to the approval of the Russian government of the law of denunciation of the Russian-Dutch tax treaty which has been recently submitted to the Russian State Duma.

Despite the effort of the European business in Russia and the Russian business community to influence the decision of the Russian Ministry of Finance to continue negotiations of treaty, it has been denied.

Next to it, as soon as the the statement will be approved by the Russian Duma, the Federation Counsel and the President, respectively, a notice of termination will be presented to the Netherlands.

However, the there is possibility for a process to be delayed or terminated by the Russian parliament. Though, there is a very little chance that this law won’t be approved. If submitted before July 1st 2021, the treaty can be terminated from January 1st, 2022. Therefore, it is the right time to think about the consequences of the termination and be prepared for the possibility of termination.

An anti-tax-avoidance bill introduced by the Dutch government

By News, Tax

The Dutch government has recently submitted an anti-tax-avoidance bill that would introduce a withholding tax on dividends paid to companies in low-tax jurisdictions.

The tax would go into effect January 1, 2024. The additional withholding tax would further the Dutch governments objective of curbing tax avoidance. Under the proposal, the tax would apply to dividends paid to companies in countries with a corporate tax rate below 9 percent, including the 12 countries on the EU blacklist, regardless of whether they have a tax treaty tax agreement in force with the Netherlands. The withholding tax proposal is part of the Netherlands’ bid to shed its reputation as a tax haven.

For more information on the proposed amendments contact Ceriel Coppus.

The Dutch transfer pricing rules

By News

In order to combat tax avoidance schemes in relation to the transfer of assets by entities located in low tax jurisdictions the Netherlands has proposed its transfer pricing rules. In a recently published draft bill the arm’s-length principle will be rendered ineffective in cross-border situations to the extent that it leads to reduced profits in the Netherlands without a corresponding inclusion in the counterparty’s jurisdiction. under the proposed rules a arm’s-length downward adjustment of a transaction between related parties will be denied unless the Dutch taxpayer can demonstrate that:

  • there is a corresponding upward adjustment in the same transaction;
  • the corresponding upward adjustment is subject to tax in the related party’s jurisdiction.

A downward adjustment is defined as taking into account higher expenses or lower profits than a third party would have agreed to. An upward adjustment is considered subject to tax if it is included at some point in the related party’s tax base. Jurisdictions that tax upward adjustments at a 0 percent rate or that would exempt the upward adjustment because of a domestic exemption (for example, an object exemption for permanent establishments) would also qualify, as long as the upward adjustment is included in the base. Jurisdictions that do not levy profit taxes, on the other hand, would not qualify because the upward adjustment would not be part of any tax base.

For more information on the proposed amendments contact Friggo Kraaijeveld, a partner of KC Legal.

Investment protection: how to setup an investment assets protection structure in the Netherlands.

By Legal, News

On Tuesday, February 2, the second webinar of KC Legal took place, where the speakers from NL-investmentconsulting and KC Legal – Nikos Lavranos and Friggo Kraaijeveld took part.

During the webinar speakers discussed BITs, its benefits, operation, Yukos case, Vodafone case, tax treaties, international arbitration and its usage against unfair government measures. Nikos Lavranos highlighted the ways to achieve optimal asset protection through BITs and demonstrated how it can benefit business. Throughout the webinar Mr. Lavranos illustrated substantive investment protection standards. The expert also discussed how to access the international arbitration and provided the cases where international arbitration was used against unfair government measures. In addition, the expert gave advice on setting up a company structure for optimal asset protection.

The second speaker, Friggo Kraaijeveld, spoke about international tax treaty dispute resolution and explained its general principles and aims. “What we want to achieve with tax treaty protection is to avoid double taxation” – pointed out the partner of KC Legal. “Setting up an investment protection treaty is some kind of insurance to avoid additional costs” – added Friggo.

KC Legal and NL-investmentprotection are the leading firms in their field. You can always reach us by LinkedIn or by e-mail. We will be glad to assist and help your business to grow.

Find out more:
Instagram: @kclegalnl
#doingbusinessinthenetherlands #financenetherlands #kclegal # nlinvestmentconsulting # investmentprotection

IR Global Tax Virtual Series 2018

By News, Tax

Tax Efficient Inbound Investment – Tax Structures for Cross-Border Acquisitions.

Anyone considering an inbound investment into another country or jurisdiction must give serious thought to taxation. Issues such as privacy, accurate asset valuation and liability protection are important, but it is the tax efficiency of a foreign investment that will most likely measure its long-term success.

There are, of course, many different types and methods of investment, whether that be via direct acquisition of a capital asset, the purchase of shares in an existing business or a real estate transaction. A smart investor will study the rules and regulations that apply to each scenario in their jurisdiction of choice, and adhere to them while minimising tax liability.

Investment by cross-border merger or acquisition is one area that has received much publicity recently, as the Organisation for Economic Co-operation and Development (OECD) works to redress certain tax-efficient structures legitimately used by smart corporates. It’s Base Erosion and Profit Shifting (BEPS) legislation is designed to address the practice of shifting profits and assets across borders to minimise overall global taxation.

This drive to halt BEPS has affected various tax reduction techniques, including patent box regimes, interest deductibility and offshore structures (via business substance tests). Buyers may also have contingent tax liabilities due to BEPS exposure under the seller’s aegis.

Where smaller investments are concerned, the rules are no less complex, as we will learn in the following discussion. For countries like the USA, which receives significant inward investment, there are withholding taxes for foreign investors on the sale of assets and the receipt of ‘soft’ income, as well as death taxes and individual state taxes to consider.

In Italy, on top of corporation tax of 24 per cent, there is a regional tax on productive activities of 4.82 per cent, which many investors will not be aware of. Employing an experienced tax advisor in the jurisdiction to be invested in, is crucial before any other decisions are made. They will help investors to decide which vehicles are best to hold assets and which jurisdictions have the most favourable tax treaties to eradicate or reduce withholding tax. The advisor will also be able to ‘read between the lines’ of complex tax legislation, structuring transactions that are tax efficient and also tax compliant. With the best applicant tracking systems one can make sure to make the process of employee recruiting seamless. With companies doing background checks with the help of it is easier to hire.

Examples include the concept of Fiscal Unity discussed here by Friggo Kraaijeveld in The Netherlands, the use of the European Union’s Parent Subsidiary Directive (PSD) to reduce withholding tax, as explained by Tommaso Fonti in Italy, or the Portfolio Interest Exemption, employed in the USA by Jacob Stein.

They will also have details of any tax incentives offered by various governments to attract inbound investment and be able to guide investors in the customs and culture of tax authorities that may be very different from those they are used to.

The following pages contain advice and guidance from five of IR Global’s tax experts and should provide an interesting insight into the many and varied tax-orientated challenges faced in pursuit of profitable foreign investment.

Download full document here: IR Global Tax Virtual Series 2018 – Tax Efficient Inbound Investment