NETHERLANDS Trends and Developments Contributed by: Dirk Brouwers, Wessel van Dijk, Erwin Boomsma and Rocio Martel, RED Transfer Pricing
RED Transfer Pricing Verwersstraat 27 5211 HT ‘s-Hertogenbosch Netherlands
Email: info@red.tax Web: www.red.tax
Tax Certainty Tax certainty mechanisms continue to play a central role in the Dutch tax and transfer pricing framework. The Netherlands was recognised as having the most effective case load management of MAP and APA cas - es in the large inventory category at the 2025 OECD Tax Certainty Day, where the results of the 2024 MAP and APA awards were announced. Compared to its peers, the Netherlands obtained the highest closing ratio (47%). The closing rate measures the number of MAP/APA cases closed by each jurisdiction compared to total caseload, considering case outcomes. In this context, Advance Pricing Agreements (APAs) and Advance Tax Rulings (ATRs) remain key instru - ments through which taxpayers may obtain upfront confirmation of the tax treatment of cross-border tax (including transfer pricing) arrangements. In addition, bilateral and multilateral Advance Pricing Agreements (BAPAs and MAPAs) may provide taxpayers with increased level of tax certainty by means of co-ordi - nated alignment between tax authorities in multiple countries. The Dutch Tax Authorities (DTA) granted more APAs in the last year compared to previous years. Moreover, taxpayers experienced a decrease in the average time needed to obtain an APA in the Netherlands. The latest statistics at time of writing indicate an average time of 32.21 months to grant an APA. However, the time typically needed to obtain an APA is significantly reduced with proper preparation, supportive documentation and tax and transfer pric - ing support. During various APA projects carried out in the course of 2025, the DTA has been increasingly interested in connecting to the business practice. Improving their understanding of the latest developments (including
uncertainties and challenges), the DTA encourages taxpayers to enter in early and open engagement. Taxpayers can do so through (anonymous, high-lev - el) informal discussions using intermediaries or (more detailed) pre‑filing meetings. This proactive approach helps foster a co-operative, practice‑oriented process and may for example benefit parties assessing the feasibility of an APA request or aligning expectations between taxpayers and the DTA early on. In cases where taxpayers are exposed to cross-bor - der transactions that give rise to (potential) double taxation, the Mutual Agreement Procedure (MAP) continues to serve as an essential dispute resolution mechanism under applicable tax treaties and the EU Arbitration Convention. The MAP enables competent authorities to eliminate double taxation. In line with the trend in the past years, the Netherlands expe - rienced an increase in the number of MAP cases. With this increased transfer pricing MAP caseload for the competent authorities, taxpayers also expe - rienced an increase in the average time needed to close MAP cases in the Netherlands. With an average time of 25.99 months, this represents an approximate increase of 4 months compared to the previous year. Netherlands v “Tobacco BV”, September In September 2025, the Court of Appeal of Amster - dam ruled in an appeal against the ruling of the Lower Court of Amsterdam of 17 October 2022 in relation to multiple tax assessments with significant transfer pricing corrections to taxable amounts declared by “Tobacco BV”. 2025, Gerechtshof Amsterdam (ECLI:NL:GHAMS:2025:2377)
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