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On May 7, 2020 the Court of Justice of the European Union (‘CJEU’) rendered judgment in the Dong Yang Electronics case (C-547/18). The case concerned whether a subsidiary may, for VAT purposes, constitute a fixed establishment, and, if so, how the service provider must determine whether it performs its services to the parent company or the fixed establishment.

Not only are companies assessing the impact of the multitude of changing circumstances created by COVID-19, they are also having to sort through a host of new laws and regulations to determine how they might be affected. In most countries, the tax authorities have responded quickly to the changing circumstances of people and business by introducing relief measures such as deferred tax filings to reduce the pressures on businesses, tax-rate reductions, and VAT exemptions. 

By policy statement dated April 14, 2020 the Deputy Minister of Finance announced a number of specific approvals as a result of the corona crisis. That policy statement has now been replaced by the policy statement of April 22, 2020, in which the approvals in the previous policy statement are supplemented with new approvals, including with regard to deferral of payment, payment default penalties and the notification of inability to pay.

The multilateral instrument (MLI) entered into force in the Netherlands on January 1, 2020. For many treaties this means that the application of such a treaty is not as self-evident as before. Do you want to avoid unpleasant surprises, also once the COVID 19 storm has died down? We have summarized the most important points of the MLI for you!

The government is introducing additional tax measures as a result of the corona crisis. By letter dated April 24, 2020 sent to the Lower House of Parliament, the Deputy Minister of Finance announced six measures, including the possibility to form a corona tax reserve that can be set off against the profit for the year 2019.

By letter dated April 22, 2020 the Minister of Social Affairs and Employment announced an important expansion of the group approach in the NOW. We discuss this expansion briefly. We also discuss the announced easing of the unemployment insurance contributions differentiation and the imposition of penalties in respect of highly skilled migrants.

By letter dated April 14, 2020 sent to the Lower House of Parliament, the Deputy Minister of Finance released a policy statement that further elaborates on the emergency tax measures by means of the granting of several specific approvals.

The Committee was asked to advise on measures to make the taxation of the profits of multinationals fairer, while at the same time ensuring that the Netherlands remains attractive for Dutch head offices.

Besides VAT, personal income tax, payroll tax and corporate income tax, the temporary deferral policy now applies to tax on games of chance, insurance premium tax, the landlord levy (verhuurderheffing), environmental taxes (energy tax/surcharge for sustainable energy (Opslag Duurzame Energie; ODE), coal tax, waste tax, tax on tap water), customs duties, excise duties (mineral oils, alcohol and tobacco), consumption tax on non-alcoholic drinks and similar taxes in the Dutch Caribbean.

In these turbulent times, it is very important to keep a close eye on your transfer pricing policy. We've listed the most important things you should consider when it comes to your transfer pricing matters.