International tax
Stricter substance requirements for service companies applicable as of 2021
The Dutch government announced that the substance requirements that currently apply to so-called service companies will be tightened as of 2021. In case a service company claims or could have claimed the benefits of a double tax treaty, the EU Interest/Royalty Directive, or a domestic provision implementing this directive in relation to incoming interest, royalty, rent or lease payments and one or more of the substance requirements are not met, the Dutch tax authorities will exchange this information with the relevant source country.