The global debate on alleged aggressive international tax planning initiated by the G20/OECD and the EU, is an important driver of the current developments in the field of international taxation. The following is a high level summary of certain developments relevant for the Netherlands:
• On 25 June the EU Mandatory Disclosure Directive entered into force. This Directive requires intermediaries (e.g. tax advisors) and/or taxpayers themselves to report cross-border tax planning structures that meet certain criteria, to the tax authorities in their EU Member State of residence. This information is then exchanged with the tax authorities in the other EU Member States. The Directive applies to tax planning structures of which the first step was implemented on or after 25 June 2018. We refer to MyStibbe* for detailed information.
• As per 1 January 2019, the first part of the EU Anti-Tax Avoidance Directive has to be implemented by all EU/EEA Member States. The Directive introduces several measures to counteract alleged aggressive tax planning, such as an interest deduction limitation (in the form of an earningsstripping rule) and a CFC regime that applies in respect of foreign low-taxed group companies. In addition, as per 1 January 2020 the second part regarding so-called hybrid mismatches has to be implemented. We refer to our Tax Alert for detailed information.
• The Multilateral Convention (also referred to as the 'MLI') is a multilateral treaty aimed at counteracting the improper use of double tax treaties. There are currently 83 countries worldwide that have signed up to the MLI, including the Netherlands. The MLI has entered into force as per 1 July 2018 and is currently in the process of being ratified by the Dutch parliament (it is expected to have effect as of 1 January 2020). Pursuant to the MLI a substantial amount of anti-abuse provisions are added to the double tax treaties between the countries that signed up to the MLI. We refer to our Tax Alert for detailed information.