Aug 24, 2016
Both the OECD/G20 and EU have introduced rules aimed at improving transparency on tax rulings granted by jurisdictions. As part of the outcomes of Action 5 of the OECD/G20 BEPS Project, a framework for the compulsory spontaneous exchange of information regarding rulings was approved. Similarly, the amendments of EU Directive 2011/16/EU provide for the mandatory spontaneous exchange of information between Member States.
The Dutch Tax Authorities have already started to prepare for the anticipated exchange of rulings. They have developed an ‘Exchange of Tax Ruling’ form that applies to rulings granted since 1 January 2010 and applicable after 1 January 2014. The form must be sent to the Dutch Tax Authorities within three weeks once requested. The Dutch Tax Authorities aim to share all the forms before the end of 2016.
A ruling is considered to be “any advice, information or undertaking provided by a tax authority to a specific taxpayer or group of taxpayers concerning their tax situation and on which they are entitled to rely”.
Under the OECD Framework, exchange of information on the rulings will need to be completed by 31 December 2016.
Form content and ‘Affected entities’
The content of the form includes general information on the taxpayer and the type, the duration and a summary of the ruling. Further, identification information on the so-called ‘Affected entities’ is included.
The forms will be exchanged with the tax authorities of the ‘Affected entities’. ‘Affected entities’ are the ultimate parent company, the immediate parent company and (depending on the ruling) ‘all related entities with whom the taxpayer enters into transactions that are covered by the ruling’.
Some typical questions are:
For additional information, please contact:
M: + 31 6 50 88 94 37