Leiden Law Blog

Behind the scenes: Dutch ruling practices revealed

Behind the scenes: Dutch ruling practices revealed

On 27 March 2017, the Netherlands released a document concerning the Dutch tax ruling practice under the Freedom of Information Act. I made this request to the Dutch Ministry of Finance in January of this year.

The term ‘ruling’ is generally used in cases where prior certainty is provided on the levy of corporation tax in the form of Advance Pricing Agreements (APAs) and Advance Tax Rulings (ATRs). The document, which was prepared by civil servants of the Ministry of Finance in January 2015, describes the most common forms of APAs and ATRs.

Crucially, the document requests the Undersecretary for Finance for confirmation that the Dutch tax authorities should continue to issue APAs and ATRs. This is against the backdrop of the ongoing debate on international tax planning.

The note covers APAs and ATRs on intermediate holding companies (‘letterbox companies’), the tax position of non-resident taxpayers, the qualification of hybrid financial instruments and hybrid entities, CV/BV structures, informal capital, principal-agent structures, financing and royalty-activities, attribution of profit to a permanent establishment and re-invoicing. All of the above are used by multinationals for tax planning purposes, though it should be noted that some of these points have been rendered moot following the introduction of new EU anti-abuse measures. 

It is the first time that a document is published that provides a comprehensive overview of the Dutch ruling policy. However the document raises two important questions:

  1. Which forms of rulings remain largely unaffected by the BEPS proposals?
  2. Should the Dutch tax authorities continue to issue these rulings bearing in mind that the main purpose of the BEPS project is countering tax avoidance?


Dr.Mr. Hans J. Hoegen Dijkhof
Posted by Dr.Mr. Hans J. Hoegen Dijkhof on September 23, 2017 at 20:18

Hi. I refer you to my article “Some Remarks about the Dutch Tax Ruling Practice” which I published already in December 2015. I think it is pretty comprenensive. There also was the Ruling booklet issued by the Rotterdam tax inspectorate about 30 years ago. But the matter is that complicated that not many people will read it or understand it.


Jurgen van Ooijen
Posted by Jurgen van Ooijen on September 22, 2017 at 09:06

Beste Jan,

Ik lees je stuk over het document uit 2005 betreffende de ruling praktijken in Nederland. Ik heb 2 vragen.

1 - zou je me een digitaal exemplaar van dit document willen toesturen?
2 - Hebben ze je, gezien de nieuwe EU anti-misbruik maatregelen, geen verouderde versie toegestuurd, en dus met een kluitje in het riet?

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