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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Deputy Minister announces proposed policy for renewed ruling practice

April 26, 2019

In a letter sent to the Lower House on April 23, 2019, the Deputy Minister of Finance announced the proposed policy statement, in which the measures for reforming the practice for rulings with an inte ...

Fiscal Unity Emergency Repair Act adopted by Upper House

April 25, 2019

On April 23, 2019, the Fiscal Unity Emergency Repair Act (Wet spoedreparatie fiscale eenheid) was adopted by the Upper House. We had previously explained the bill in our memoranda dated June 7, 2 ...

Internet consultation on bill amending the liquidation and cessation loss rules for corporate income tax purposes

April 17, 2019

Lower House MPs Snels (Groen Links), Leijten (SP) and Nijboer (PvdA) intend to submit a private members’ bill amending the liquidation and cessation loss rules in the Corporate Income Tax Act 1969. On ...

FS Tax Newsletter | April 2019

April 11, 2019

The first quarter of 2019 has come to an end and we are presenting our second FS Tax Newsletter for this year. In this newsletter, we have summarized the most recent tax-related developments in the FS ...

Bill on the introduction of a UBO register

April 9, 2019

Legal persons and other legal entities will soon be obliged to register their ultimate beneficial owners. On April 4, 2019 the bill ‘Implementation registration of ultimate beneficial owners of compan ...

VAT policy statement on specific state supervision of investment funds

April 8, 2019

On April 1, 2019, the Deputy Minister of Finance (hereinafter: Deputy Minister) published the Specific State Supervision Policy Statement, effective April 2, 2019. In this policy statement the Deputy ...

Internet consultation on introduction of interest deduction limitation (thin cap rule) for banks and insurers launched

March 25, 2019

On March 18, 2019 the Dutch government launched an internet consultation offering interested parties the opportunity to respond to the draft bill that introduces the thin cap rule for banks ...

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 ...

International tax measure for the digital economy affects all multinationals

March 14, 2019

A ‘Taxing the digital economy’ roundtable session recently took place at KPMG Meijburg & Co in Amstelveen; a successful and interactive session with interesting results. The most important conclus ...

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 ...

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 ...

Consultation on draft bill against excessive borrowing from own company

March 6, 2019

On March 4, 2019 an internet consultation on the draft bill on the Excessive Borrowing from Own Companies Act was launched. This bill had been announced in September last year on Budget Day (see secti ...

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