Insights

Are you also liable to withholding tax on dividends as of January 1, 2024? Starting from that date, the Conditional Withholding Tax on Dividends Act will be in effect. An additional withholding tax on dividends will apply to low-tax jurisdictions and in cases of abuse. How can you find out if you will be required to withhold, and what should you take into account?

As a result of the European Court of Justice's (hereinafter ECJ) ruling, a reference on the invoice to a VAT-exempt intra-community ABC transaction is no longer sufficient for applying the simplified ABC scheme. In this article you can find the new invoice requirements.

The European Commission proposed a new EU directive for micro, small, and medium-sized enterprises (SMEs) who operate cross-border through permanent establishment.

The Dutch tax authorities (DTA) have decided not to impose so-called ‘default fines’ (betaalverzuimboetes in Dutch) on e-commerce businesses which have opted for the EU VAT One-Stop-Scheme (OSS). This applies until 1 June 2024. Default fines already imposed will be reversed and objections declared well-founded. Additional VAT assessments (excluding interest payable for late payment of VAT) will still be imposed. The DTA will publish a policy decision on the matter this year.

On 26 October 2023, the Dutch House of Representative (Tweede Kamer) voted in favour of two amendments which will likely alter the current 30% tax ruling facility.

As an entrepreneur with a BV (private limited company) structure, you may distribute yearly dividends from your BV. These distributions are subject to income tax in box 2. Starting from January 1, 2024, the tax rates in box 2 will change. What does this mean for you?

You may give your employees untaxed allowances, both in wages and in kind (such as a staff party or a Christmas package). This is arranged through the Work-related expenses scheme (WKR). To be untaxed these allowances must fit in the free space that the WKR allows. In this theme about the WKR, we take a closer look at the risks and opportunities of the WKR.

Do you offer your employees the opportunity to acquire stock options in your company? Pay close attention because as of January 1st, 2023, the stock option regime in the Netherlands has changed. In addition, the Tax Authorities' Knowledge Group for payroll taxes has now taken an important position on the valuation of a participation in a publicly traded company. What should you take into account?

The Court of Justice of the European Union (ECJ) recently decided on the issue of VAT refunds. The ECJ explained under which conditions the buyers of the goods or services can claim undue VAT back directly from the tax authorities. The direct claim may be possible if a seller refuses to correct invoices and pay back VAT charged too much relying on civil law limitations. In addition, a direct claim by a buyer may be possible if national legislation makes it impossible for suppliers to obtain a refund of undue VAT, for example, due to end of statute of limitations periods.

Businesses usually provide goods or services against a payment. However, it sometimes happens that they do things free of charge, for example, to promote their sales or motivate their employees. The Court of Justice of the European Union (ECJ) has lately explained how VAT applies to such free supplies of goods or services. This article looks at the VAT aspects of giving goods away free of charge to promote the activities of a business.

Do you use the work-related expenses scheme (WKR) to provide tax-free benefits to your employees? As of January 1, 2024, the temporarily increased tax-free budget will expire.

Do your foreign employees benefit from the 30% ruling? Be aware that starting from January 1, 2024, the Dutch Tax Authorities will limit the application of this scheme.

Do you invest private assets using the Exempt Investment Institution (EEI) regime? The government has proposed to amend the EEI-regime as per 1 January 2025. Consequently, you will no longer have the possibility to use the EEI-regime when investing private assets. Why is this change necessary and what are the implications for you?

Is there a real estate Fiscal Investment Institution (FII) within the structure of your organisation? The government has proposed to introduce a ‘real estate measure’ from 1 January 2025. From that moment on, a FII will no longer be allowed to invest in Dutch real estate. Why this modification and how do you properly prepare for it?

Are there any Mutual Funds present within your organisation’s group structure that qualify as non-transparent? If so, take into account the proposed changes in transparency rules for Mutual Funds as per 1 January 2025. What will change and how do you prepare for it?

Do you receive dividends? If so, take into account a number of measures to improve the approach to dividend stripping, which involves avoiding dividend tax.