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Cross border tax groups


Following an ECJ ruling over the Dutch fiscal unity regime, the State Secretary announced that certain cross border tax groups will be possible under Dutch law. Taxand Netherlands looks at the new legislation. 

Dutch companies will be able to form a fiscal unity, even when the Dutch companies are held by intermediary non-Dutch companies. 

Which tax groups will become possible? 
In line with the ECJ decisions, a fiscal unity should be allowed between two Dutch sister companies, even when the parent company is a non-Dutch company. Also a fiscal unity between a Dutch parent and its Dutch sub-subsidiary should be allowed, even if the sub-subsidiary is held by a non-Dutch company. 

Legislative proposal in 2015
In the press release, the State Secretary furthermore announced that the Dutch fiscal unity regime will be amended to make the regime comply with EU law. It is expected that a legislative proposal will be submitted in the first months of 2015.

Special Decree for requests already filed
The State Secretary also announced that in the meantime, a special Decree will be issued for pro forma requests that have already been filed pending the ECJ cases. Based on this Decree, the pro forma requests can be granted prior to the new legislation. In this Decree, the conditions for cross border fiscal unities will be set out in more detail. 

Discover more: Update from Dutch Ministry of Finance regarding cross border tax groups

Your Taxand contact for further queries is:
Marc Sanders
T. +31 20 757 09 05


Taxand's Take

Dutch companies and MNCs should take note of legislative changes and prepare for the new year.

Taxand's Take Author

Marc Sanders
Taxand Board member

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