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Dutch exit tax provisions disproportionate - In the National Grid Indus case the European Court of Justice (ECJ) held that the Dutch exit tax provisions for companies were disproportionate because they resulted in an immediate tax to be paid at the time of transfer of tax on unrealized capital gains relating to assets of a company transferring its place of effective management to another Member State, without granting the option of a tax deferral.

 On 31^st May 2012, the Court of Appeal Amsterdam confirmed this decision of the ECJ. This Court, however, held the fact that the tax inspector will require a bank guarantee in case of a tax deferral is no obstacle for transferring the place of residence of a company. In addition, the Court held that the imposition of tax collection interest is also not incompatible with the EU freedom of establishment. The Court held decisive that the collection interest is only calculated on the amount for which a tax deferral was claimed and it will only be collected when the tax deferral is terminated.

 

Dutch bank tax - On 22^nd May 2012, the Lower House adopted the bill to introduce a bank tax

This introduces:

	a tax of 0.044% for short-term liabilities and 0.022%, for long-term liabilities;
	a surcharge of 10% will be imposed if a manager obtains a bonus of more than 100% of his salary; and
	two years after the introduction of the bank tax, the surcharge will be due if a manager obtains a bonus of more than 25% of his salary.

 

Furthermore, it was agreed that the government will soon introduce a measure to realize a proper allocation of the taxing rights to avoid double taxation. It was expected that the bank tax would be adopted because it was included in the agreement for the 2013 Budget. It is expected that this tax will influence the granting of loans to companies. This is based on the fact that the amount of loans granted by banks is usually equal to a fixed percentage of a bank's equity, which will be reduced by the tax. In addition, the reduction of the equity of banks by the tax will, moreover, make it more difficult for banks to meet the new capital requirements as agreed under the Basel III Agreement.

 

On 21^stJune, the Dutch Lower House approved some fiscal measures for the 2013 Budget that may be important for our clients.

One regards the introduction of a so-called "one time only" crisis levy on high incomes being incomes (including bonuses) in excess of EUR 150,000 in 2012. These incomes will be subject to a one-off withholding tax of 16% in 2013. The employer is liable for payment of the tax. Another fiscal measure is the introduction of so-called excessive severance payments. Employers must withhold tax at a rate of 75% on excessive severance payments. Currently, this is 30%.

 

 

 

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5144 NC Waalwijk, Netherlands

Phone: +31 (0)416 330 505

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HLB Van Daal & Partners is a member of HLB International. As a firm of professional accountants and business advisers, HLB Van Daal & Partners Accountants & Belastingadviseurs is committed to providing clients with an exceptional standard of services and expertise that will add value to their businesses and contribute to their growth. HLB Van Daal & Partners Accountants & Belastingadviseurs has a vision for your future, a plan to help you thrive in the new economy, and a passion for success.

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