Important judgment on tax classification of financial instrument

On May 17, 2024 the Dutch Supreme Court rendered an important judgment on the tax qualification of a financial instrument that was issued by a company established in France in 2007. It concerned the ‘obligation remboursable en actions’ (hereinafter: ORA). The question was whether the instrument had to be regarded as equity (capital) or debt capital (loan) for the purposes of the Corporate Income Tax Act 1969. Although the dispute focused on the question whether the costs related to the issue of the instrument were allocable to a Dutch permanent establishment of the French company, the Supreme Court judgment potentially has a much broader scope.

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Update on ‘no-deal’ Brexit: withdrawal rules for UK citizens and family members

March 21, 2019
In anticipation of a possible ‘no-deal’ Brexit, the Deputy Minister of Justice and Safety has published withdrawal rules for citizens of the United Kingdom and their family members who lawfully reside ...
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Bill on the Modernization of Partnerships: third time lucky?

March 14, 2019
The consultation document on the bill on the Modernization of Partnerships (‘Bill') was published on February 21, 2019. The current legislation on partnerships dates from the 19th century an ...
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Draft decree on transitional tax rules in the case of no-deal Brexit

March 13, 2019
On March 8, 2019, the Deputy Minister of Finance sent a draft decree with transitional tax rules in connection with Brexit to the Lower House of the Dutch Parliament. The draft decree must provide for ...
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CJEU decision on the Beneficial Owner concept under the Interest and Royalties Directive and the Parent-Subsidiary Directive

February 28, 2019
On February 26, 2019, the Court of Justice of the European Union (CJEU) rendered two landmark decisions on the interpretation of the beneficial owner concept in cases where the Interest and Royalties ...
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Dutch Lower House of Parliament passes Bill on ratification of the MLI

February 13, 2019
On February 12, 2019 the Dutch Lower House of Parliament passed the Bill for the ratification of the Multilateral Convention (“MLI”) to Implement Tax Treaty-Related Measures to Prevent Base ...
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Bill on the Fiscal Unity Emergency Repair Act adopted by the Lower House

February 13, 2019
On February 12, 2019, the bill on the Fiscal Unity Emergency Repair Act (Wet spoedreparatie fiscale eenheid) was adopted by the Lower House. This bill was explained in our previous memoranda dated&nbs ...
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Draft bill on transparency of civil society organizations: foundations and associations must publish donations and financial data

January 11, 2019
On December 21, 2018, the Minister for Legal Protection published the draft bill on the Civil Society Organizations Transparency Act. The proposal provides for, on the one hand, insight into cash flow ...
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Brexit: INS announces transitional rules for right of residence of UK citizens in the Netherlands

January 8, 2019
‘No-deal scheme’ The government has decided that UK citizens and their family members who lawfully reside in the Netherlands before Brexit will also retain their right of residence in the event of ...
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Dutch Supreme Court renders important judgment on costs related to the acquisition or disposal of participations

December 12, 2018
For Dutch corporate income tax purposes, the costs related to the acquisition or disposal of shares that are covered by the participation exemption are non-deductible. On December 7, 2018 the Dutch Su ...
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ECOFIN discusses new French-German proposal for an EU Digital Services Tax

December 5, 2018
On December 4, 2018, the Economic and Financial Affairs Council of the EU (ECOFIN) held an exchange of views on the digital services tax, but failed to reach an agreement on a compromise text tabled b ...
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Deputy Minister outlines main features of updated ruling practice – stricter requirements for rulings with an international character

November 26, 2018
In a letter sent to the Lower House on November 22, 2018, the Deputy Minister of Finance outlined the main features of the revision of the ruling practice. The revision is aimed at further safeguardin ...
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Public consultation on Bill implementing ATAD2

November 1, 2018
On May 29, 2017, an amendment to the EU Anti-Tax Avoidance Directive was adopted, so that this directive also focuses on combating hybrid mismatches between EU Member States and third countries (ATAD2 ...
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