NETHERLANDS Trends and Developments Contributed by: Dirk Brouwers, Wessel van Dijk, Erwin Boomsma and Rocio Martel, RED Transfer Pricing
Transfer Pricing Risk Analysis (Transfer Pricing Memorandum, December 2025) The internal note provided by the CGVP provides tax inspectors with additional guidance on how to approach transfer pricing risk assessments in tax audits. This supports the observed trend of an increased interest of the Dutch Tax Authorities in structures involving transfer pricing and outlines how the DTA approaches tax audits, with the aim of iden - tifying high-risk structures before starting in-depth investigations and involving inspectors specialised in transfer pricing. Particularly of interest and risk factors that may lead to in-depth tax audits include: • financial results that do not match with functional profiles (such as structural losses for routine par - ties); • transactions involving intangibles such as brands, patents or know-how; • complex financial transactions; • business restructurings; • insurance transactions; and • allocation of assets, liabilities and profits to perma - nent establishments.
As a new element, the CGVP briefly introduces guar - antees for obligations other than loans, which should be assessed on a case-by-case basis, and notes res - ervations regarding the charging of a guarantee fee in the context of cash pool structures and the so-called 403 declaration, where a parent company files a writ - ten statement assuming joint and several liability for the debt of consolidated subsidiaries. Performance guarantees also occur regularly in prac - tice. These situations often arise when a parent com - pany agrees to support or back the obligations of a subsidiary in relation to a contract with a third party for the provision of services. In such arrangements, the parent effectively assures the third party that the con - tractual obligations of the subsidiary will be fulfilled. Additional guidance on the treatment of these guaran - tees would provide greater certainty when evaluating an arm’s length transfer pricing framework applicable to these arrangements.
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