Transfer Pricing 2022

Chambers published our Transfer Pricing team’s updated 2022 TP Guide for the Netherlands.

In this contribution the most relevant questions about Dutch TP practice are being answered. Feel free to contact our specialists Jimmie van der Zwaan, Thomas Dijksman and Willem Koeleman, if you have any questions about our contribution or if you would like to schedule an introduction meeting. To read the contribution chick here.

Taxand Global Transfer Pricing Virtual Conference 2022

The Taxand Global Transfer Pricing Virtual Conference 2022, held on 24 February, was our opportunity to host our partner network and cover a range of topics pertinent to our European and Asian market, and our North American market.

Discussed on the day were topics such as: procurement and distribution activities in Asia; Transfer Pricing perspectives on strategic planning; a case study on a concluded MAP in Europe and Asia; and a comparative discussion of investment structures and opportunities in the North American Market.

Europe and Asia Market
Stefano Bognandi from LED Taxand Italy kicked off the morning session welcoming the speakers, who shared their practical experiences focusing on both distribution and procurement activities with MNEs making direct investments in Asia and the local markets. We then moved on to the discussion covering topics such as headquarter and regional service charges, the implementation of the OECD/UN’s DEMPE concept in Asian countries and supply chain reorganization and a case study on a concluded MAP in Europe and Asia.

North American Market
A comparative discussion of investment structures and opportunities in the North American market, highlighting the experiences of our experts in Canada, Mexico and the United States in a series of “bite-sized” topical sessions was covered in the afternoon session by our speakers.

We want to thank all of our speakers for giving insights on relevant ‘Hot Topics’ throughout Europe and Asia, and the North American market. To access the recording of the conference, follow the link here.

Interest rate on intra-group financing

Based on the arm’s length principle, all intra-group financing must be set on arm’s length terms and conditions for tax purposes.

These are the terms and conditions under which independent third parties (e.g. banks) would provide financing. This article, published by Lexology, compares the loan approach and the bond approach, being the most common Comparable Uncontrolled Price methods of setting an arm’s length interest rate for intra-group financing. Although the OECD has concluded that both approaches can be valid and the approaches are to a large extent substitutes, the bond approach seems to be the preferred alternative.

To read the Dutch contribution of Jimmie van der Zwaan, Thomas Dijksman and Willem Koeleman of Taxand Netherlands: click here.

Taxand Global Transfer Pricing Virtual Conference

We are delighted to invite you to our Taxand Global Virtual Transfer Pricing Conference on 24 February 2022.

We will be presenting short panel discussions focusing on relevant ‘Hot Topics’ throughout Europe and Asia, download the agenda here and register for the event.

Morning sessions (times CET)
09:00 – 09:10 – Welcome to the Taxand Global Transfer Pricing Virtual Conference – Stefano Bognandi (Italy)

09:10 – 10:00 – Procurement and distribution activities in Asia – Practical experience from European clients

  • Operations, intragroup flows and transfer pricing compliance
  • Asian specificities affecting the transfer pricing policies
  • The role of regional hubs

Fabien Billiaert (France), Sandrine Woirnesson (Kiabi Group) and Aaron Meneghin (Valentino)

10:00 – 10:15 – Break

10:15 – 11:00 – Strategic planning perspectives

  • Implementation of the DEMPE concept in Asian countries
  • HQ and regional service charges
  • Supply chain reorganisation

Michael Puls (Germany), Sarah Chew (Malaysia), Eve Xiao (China) and Rohit Jain (India)

11:00 – 11:15 – Break

11:15 – 11:55 – An example of concluded MAP case – Permana Adi Saputra (Indonesia) and Alberto Lissi (Switzerland)

11:55 – 12:00 – Closing remarks – Stefano Bognandi (Italy)

Afternoon sessions (times CET)

15:00 – 15:10 – Welcome & Introduction – Another pandemic? New tax reforms are multiplying at a fast rate across the Globe. How can we prepare for the new “variants”? A practical overview on transfer pricing changes across the Americas. – Fabrizio Lolliri (US)

15:10 – 15:30 – A helicopter view of the US, Canada and Mexico – New and upcoming Transfer Pricing rules and changes

15:30 – 15:50 – A pandemic within a pandemic? – Short and long-term impact of COVID-19

15:50 – 16:10 – Plan, defend, fix and repeat – the new “normal”? – A practical case study on complexities and sustainability of tax and TP planning

16:10 – 16:25 – Q&A – Fabrizio Lolliri (US) Steve Suarez (Canada) and Enrique Ramirez Figueroa (Mexico)

16:25 – 16:30 – Closing remarks – Fabrizio Lolliri (US)




Newsflash: Ontslagvergoedingen in internationaal verband

De allocatie van het heffingsrecht bij ontslagvergoedingen in internationaal verband is per 5 februari 2022 aangepast.

Voorheen werd dit beoordeeld aan de hand van de landen waar de werknemer de laatste 12 maanden gewerkt had. Nu kijk je naar waar de werknemer gedurende de volledige dienstbetrekking heeft gewerkt. Als het verloop van de dienstbetrekking niet meer kan worden achterhaald, val je terug op de laatste 12 maanden.

Deze uitleg kan, onder voorwaarden, ook worden toegepast op ontslagvergoedingen die voor 5 februari 2022 zijn uitbetaald, maar waarvan de aanslag over het desbetreffende aanslagjaar nog niet vaststaat.

Newsflash: Nieuwe salarisnormen voor 30%-regeling per 2022

Om in 2022 in aanmerking te komen voor de 30%-regeling dan wel deze te kunnen blijven toepassen, moet het belastbaar loon op jaarbasis hoger zijn dan de volgende bedragen:

  2022 2021
Werknemer EUR 39.467 EUR 38.961
Werknemer <30 jr. + mastertitel EUR 30.001 EUR 29.616

Bij de aanvraag van de 30%-regeling zal het vaste belaste loon bij het aangaan van de arbeidsovereenkomst aan de salarisnorm moeten voldoen. Het is dus niet voldoende als aan het einde van het jaar aan de salarisnorm is voldaan, bijvoorbeeld omdat de werknemer een bonus heeft gekregen.

Webinar: Transfer Pricing Developments in the Netherlands

Taxand is pleased to invite you to watch our webinar: ‘Transfer Pricing Developments in the Netherlands’ presented by our TP specialists Jimmie van der Zwaan and Thomas Dijksman last Wednesday, December 8, in association with Pride Partners International.

This webinar covers the broader developments in Transfer Pricing in the Dutch tax landscape. The webinar will focus on the New Dutch TP mismatch legislation that is proposed to enter into force per 2022 and related developments, such as:

  • Amended Dutch ruling policy;
  • Conditional WHT on interest and royalty’s; and
  • Increased substances requirements for financials services entities.

Please click here to insert name and e-mail and watch the replay!

Newsflash: Measures against incentives to split-up taxpayers voted against

During the parliamentary discussions of the 2022 tax plan, the opposition introduced a series of amendments to amend the Dutch Corporate Income Tax Act.

Part of the proposed amendments (filed by Maatoug) to the 2022 tax plan were measures against incentives to split-up taxpayers.

  • €1 mio threshold earnings stripping rule: Under the proposed amendment the €1 million threshold in the earnings stripping rule (i.e. interest deduction limitation) could only be applied once within a group. This can currently be applied per taxpayer and thus multiple times within a group.
  • 15% step-up rate CIT: Under the proposed amendment the step-up corporate income tax rate of 15% for the first €245,000 of annual profit (2021), increased to € 395,000 in 2022 could only be applied once per group. This can currently be applied per taxpayer and thus multiple times within a group.
  • Group definition: For purposes of the above measures, a group was defined as a shareholder relationship of 75% or more. To claim the aforementioned facilities under the proposed amendment, a request had to be filed by the respective group companies to claim the step-up rate or €1 million threshold.

The parliament voted against the aforementioned amendments on 11 November, 2021.

Continue reading here

Webinar: Transfer Pricing for Funds: Art or Science?

Taxand is pleased to invite you to our thought leadership webinar on “Transfer Pricing for Funds: Art or Science? ” on Wednesday 17 November 2021 4:00-5:15 pm (CET).

On the aftermath of the Covid-19 global pandemic, the world is reshaped by novel challenges and investment opportunities. The Investment Funds Management sector develops commercial strategies reflecting current trends like no other, adapting to regulatory and tax changes as well as market dynamics.

Transfer Pricing Risk Management is consistently identified as a top tax priority by fund managers. In this webinar brought to you by Taxand, we share our latest practical insights on tax and transfer pricing for the investment fund management industry, discussing shifting business models, tax risks to avert and all the essentials that you need to know to secure high standard compliance and navigate complexity.

Please click here to register!


Update on the Netherlands Budget Day 2022

On September 21, 2021, the Ministry of Finance presented the 2022 Dutch budget, including the tax plan to parliament. Following the political debates, political agreement was reached to make several amendments to the 2022 tax plan. These amendments resulted from a motion that was submitted on September 23, 2021. The purpose of these amendments is to enable certain public expenditures to be funded.

The expected amendments to the 2022 tax plan are:

  • Tightening of the earnings stripping rule: Currently, net interest expenses of taxpayers are only deductible for CIT purposes up to an amount of 30% of the taxpayer’s fiscal EBITDA or €1 million, whichever is higher. The (outgoing) Secretary of Finance has indicated that he will submit a proposal limiting the deduction percentage from 30% to 20% of the fiscal EBITDA. On September 13, 2021, a study was completed on how the tax treatment of equity and debt could be treated more equally. This study showed that this could be achieved by limiting the deduction percentage under the earnings stripping rule to 20%. In addition, a member of parliament pointed out the risk of “splitting up” of taxpayers in order to benefit from the threshold (€ 1 million) in the earnings stripping rule. The (outgoing) Secretary of Finance has indicated that the risk of splitting up of taxpayers shall be considered jointly with the amendment of the reduced percentage mentioned above.
  • Increasing the highest corporate income tax rate: Currently, the highest corporate income tax rate is 25%. This rate is likely to be increased to 25.8%.

These amendments are expected to take effect on 1 January, 2022. A formal amendment to the 2022 tax plan has not yet been published. It is expected that these amendments will be formalized in a memorandum of amendment by the end of next week.

Netherlands Budget Day Update 2022

On 21 September 2021, the Dutch government published its 2022 tax plans. They are largely as expected without any breaking news – in line with the current outgoing status of the cabinet.

Together with earlier announced proposals, the following key tax (corporate) tax items are now on the 2022 tax agenda:

  • CIT Brackets: Regular CIT rate remains 25%, with an extension to EUR 395k (2021: EUR 245k) of the step-up bracket taxed against 15%.
  • Tax losses: As of 1 January 2022, tax losses can be carried forward indefinitely. However losses may be offset in full against taxable profits up to EUR 1 million, the set-off will be limited to 50% for taxable profits in excess of the EUR 1 million.
  • Reverse hybrids: Reverse hybrid entities will be treated as Dutch tax residents for corporate income tax purposes. Furthermore, they will become a withholding agent for the dividend WHT act and the conditional WHT act on interest and royalties. There are certain exemptions for investment funds.
  • ATAD 2 for individuals: ATAD 2 rules will also apply if a hybrid mismatch arises between a Dutch taxpayer and a related individual.
  • Sofina: No more dividend refund for Dutch taxpayers only credits.
  • Transfer pricing mismatches: Proposal to avoid double-non-taxation arising from transfer pricing mismatches.
  • Conditional WHT: Technical changes to the conditional interest and royalty withholding tax.
  • Employee stock options: Amendments to the taxation of employee stock options.

Continue reading: Netherlands Budget Day Update 2022

Further contact:

Evert-Jan Spoelder, Partner, Taxand Netherlands or Karel Pellemans, Partner, Taxand Netherlands

Publication by Chambers and Partners: Transfer Pricing practice guide 2021

In the publication ‘Transfer Pricing 2021’ by Chambers and Partners, our Transfer Pricing specialists Jimmie van der Zwaan and Thomas Dijksman cover the latest developments and current regulatory standards in Dutch transfer pricing legislation. The guide will help you understand the most essential elements of Dutch transfer pricing practice.

To read the contribution of Jimmie van der Zwaan, Thomas Dijksman and Johan Loo of Taxand Netherlands, click here.

More information?

If you have any questions, with regard to this publication, please contact Jimmie van der Zwaan or Thomas Dijksman.