General - Voluntary disclosure regime tightened
Currently, a voluntary disclosure within two years after filing an incorrect tax return could prevent penalties and other punitive sanctions. Furthermore, voluntary disclosure later than two years after filing the incorrect tax return could result in a limitation of the penalties due.
As part of the Tax Plan 2018 the voluntary disclosure regime will be repealed as per 1 January 2018. Therefore, voluntary disclosure within the first two years after filing the incorrect tax return will no longer prevent penalties and/or punitive sanctions. However, voluntary disclosure is still considered as a mitigating circumstance, therefore it could still result in a limitation of the penalties for all relevant years. With regard to tax returns with a filing deadline prior to 1 January 2018, the current legislation remains applicable. This means that, provided that no extension for filing has been provided, the old regime will be applicable for tax returns covering any tax years up to and including the 2016 calendar year.
Dutch filing exemption for groups that voluntarily file a Country-by-Country Report
The 2017 budget proposal includes legislation on the voluntarily filing of Country-by-Country Reports outside the Netherlands and the associated filing exemptions that may apply to Dutch tax residents.
The Dutch Country-by-Country Reporting (“CbCR”) regulations require Multinational Groups (“Groups”) that generated consolidated revenues of EUR 750 million or more in the preceding year to make the CbCR available to the Dutch Tax Authorities. These CbCR related reporting requirements are applicable for years that started on or after January 1, 2016. The Dutch regulations on CbCR are in line with the recommendations published by the Organisation of Economic Co-operation and Development (“OECD”). However, in several countries, the CbCR reporting requirements have been implemented differently, which may lead to a so called “gap” year.
Considering that some countries adopted different implementation and / or CbCR filing dates, a mismatch in CbCR filing requirements may exist. The proposed legislation contained in art. 34f and 34g of the Dutch Corporate Income Tax Act (“CITA”) therefore effectively allows that - under specific conditions - Dutch tax residents are exempt from CbCR filing obligations in the Netherlands if the Group has voluntarily filed a CbCR for the “gap” year and this CbCR will be made available through the voluntarily filed CbCR.