NETHERLANDS LAW AND PRACTICE Contributed by: Jimmie van der Zwaan, Rob Langeveldt, Vasisthà Parmessar, Willem Koeleman and Bart-Jan Paardekooper, Borgen Tax
• E.1 – cross-border arrangements that rely on a unilateral safe-harbour rule; • E.2 – arrangements that involve hard-to-value intangibles; and • E.3 – intragroup cross-border transfers of assets, functions and risks where the pro - jected annual EBIT – during the three years after the transfer – amounts to less than 50% without the transaction. Bilateral Approach The Netherlands has been actively concluding Tax Information Exchange Agreements (TIEAs). On a bilateral level, the Netherlands is conclud - ing TIEAs specifically aimed at the exchange of information and is including provisions in accordance with Article 26 of the OECD Model Convention. Since 2009, around 28 TIEAs have been concluded. Domestic Law Based on the International Assistance (Levy - ing of Taxes) Act ( Wet op de internationale bij- standsverlening bij de heffing van belastingen , or WIBB), information is provided to foreign competent authorities upon request if there is a financial services company that does not have sufficient substance in the Netherlands. No exchange of information will be applicable if the financial services company fulfils the substance requirements. Spontaneous exchange of infor - mation is also possible if that exchange may lead to specific tax consequences in foreign coun - tries (eg, a withholding tax reduction that would otherwise not have been granted). 6.2 Joint Audits The Netherlands actively collaborates with for - eign tax authorities in conducting joint tax audits and has established specific co-operation pro - grammes with various countries. Within the European Union, the Netherlands participates
in the advanced administrative co-operation framework, which facilitates joint audits among EU member states. This framework enables tax administrations to co-ordinate audits, share information, and produce joint reports, thereby enhancing tax compliance and dispute resolu - tion. Beyond the EU, the Netherlands is a mem - ber of the Joint Chiefs of Global Tax Enforce - ment (J5), an international alliance formed in 2018 comprising tax enforcement authorities from Australia, Canada, the Netherlands, the United Kingdom and the United States. The J5 focuses on combating transnational tax crime through collaborative investigations, intelligence sharing, and joint operations. Additionally, the Netherlands has a compre - hensive network of tax treaties with numerous countries, facilitating bilateral co-operation in tax matters. These treaties often include provisions for mutual assistance in tax enforcement and the exchange of information, further supporting joint audit initiatives. 7. Advance Pricing Agreements (APAs) 7.1 Programmes Allowing for Rulings Regarding Transfer Pricing The Netherlands has a programme that allows APAs. The rules and procedures for obtaining an APA are set out in the Decree of 28 June 2019, Stcrt No 2019/13003 for rulings with an international character and its latest amend - ment – Decree of 19 December 2023, Stcrt No 2023, 25745. Bilateral and multilateral APA pro - grammes are also implemented in the Nether - lands through the above-mentioned decrees. The DTA aims to issue a decision on an APA request between six and eight weeks after it
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