NETHERLANDS TRENDS AND DEVELOPMENTS Contributed by: Jan-Willem Kunen, Natalie Reypens and Gijs van Koeveringe, Loyens & Loeff
annual report on profits and taxes paid in each country where they are active – ie, a Country- by-Country Report. The aim of this Country-by- Country Report is to enable citizens to assess the tax strategies of MNEs and to see how much they contribute to public coffers in each country. On 11 November 2021, the European Parlia - ment gave its final green light to introduce public Country-by-Country Reporting obligations in the EU in the form of an amendment of the Directive 2013/34/EU (the “Directive” ). By decree of 14 February 2024 (the “Public CbCR Decree” ), the Netherlands has imple - mented public-Country-by-Country Reporting. In-scope MNEs are required to publicly disclose a Country-by-Country Report including tax and tax-related information for financial years start - ing on or after 22 June 2024. Most in-scope MNEs will therefore have to publish their first Country-by-Country Report by 31 December 2026, in relation to financial year 2025. The Public CbCR Decree provides that, in prin - ciple, management of the following entities is required to publish a Country-by-Country Report. I. An undertaking governed by Dutch civil law and which is considered an ultimate parent undertaking of an MNE ( “NL Headquartered MNE” ), reporting consolidated revenues exceed - ing EUR750 million for each of the last two con - secutive financial years. II. A medium-sized and large subsidiary as referred to in Article 2:24a of the Dutch Civil Code that is controlled by an ultimate parent entity of an MNE that is not governed by the laws of a member state (a “Non-EU Headquar- tered MNE” ), reporting consolidated revenues
exceeding EUR750 million for each of the last two consecutive financial years; and III. A Dutch branch that is controlled by a Non- EU Headquartered MNE that reports consoli - dated revenues exceeding EUR750 million for each of the last two consecutive financial years, unless there is already a medium-sized or large subsidiary that has a reporting obligation (as mentioned under point II. above). The management of an NL Headquartered MNE and the management of a Dutch medium-sized and large subsidiary should file the Country-by- Country Report ultimately within twelve months after the end of the respective financial year with the Dutch Chamber of Commerce. The Country-by-Country Report should be made accessible to the public in at least one of the official languages of the EU, free of charge, and no later than twelve months after the end of the financial year. This should occur on the website of: • the ultimate parent entity, in the case of an NL Headquartered MNE; • the subsidiary, in case of a Non-EU Head - quartered MNE; or • the branch, the undertaking which opened the branch or an affiliated undertaking, if it is controlled by a Non-EU Headquartered MNE. Furthermore, the Country-by-Country Report should be presented using the model and machine-readable electronic reporting format as determined by the European Commission. Lastly, Dutch medium-sized and large subsidi - aries and branches are not required to publicly disclose a Country-by-Country Report if the ulti - mate parent entity of a Non-EU Headquartered
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