Intellectual property (IP) structures

The Netherlands is an attractive location for exploiting IP within international holding structures. In many cases, the tax treaties the Netherlands has concluded with other countries lead to the reduction of withholding taxes other countries levy on royalty payments. The tax treatment of the flow of royalties can be coordinated with the Dutch Tax Authorities, assuring advance certainty regarding the tax burden. The innovation box can be relied on for some types of royalties. Amortisation of intellectual property purchased is generally possible in the Netherlands.

Financing structures

The Netherlands is an attractive location for financing activities within international holding structures. In many cases the tax treaties the Netherlands has concluded with other countries lead to the reduction of withholding taxes other countries levy on interest payments. The Netherlands levies withholding tax on the interest payments by Dutch companies to foreign parties only in exceptional cases. The tax treatment of the flow of interest can be coordinated with the Dutch Tax Authorities, assuring advance certainty regarding the tax burden in the Netherlands.

Holding activities

The Netherlands is an attractive location for holding activities within international holding structures. In many cases the various treaties the Netherlands concluded with other countries lead to the reduction of withholding taxes other countries levy on dividend payments. In addition, under certain conditions Dutch tax law offers the application of the participation exemption, under which a full exemption from taxation can be claimed for income – capital gains and dividends – from qualifying participations.

Transfer of registered office

It may be appealing for companies to transfer their registered office (zetelverplaatsing) to a different country. Both transfers from the Netherlands to other countries and transfers from other countries to the Netherlands occur regularly. There may be various different reasons to transfer your registered office to the Netherlands. The tax-friendly Dutch business climate might be one of them. The Netherlands has an attractive tax system for transfers to the Netherlands. In principle, a step-up for corporate income tax can be claimed in the Netherlands for the assets that are held by the relevant company and, with the right structuring, a step-up for dividend withholding tax can also be reached. Often, it is also possible for companies transferring their registered office abroad to make plans to prevent or limit exit taxes.

Cross-border mergers

Cross-border mergers force the merging parties to ask themselves which jurisdiction the post-merger company should have its registered office in. Often, the Netherlands is chosen. The participation exemption, the availability of proper tax treaties and the Dutch substance regulations play an important role in that respect. Our advisers can map out the tax advantages and disadvantages for choosing the Netherlands as the place where the registered office of the post-merger company will be located.

Emigration

Natural persons emigrate for various reasons, but emigration has tax-related consequences. In some cases, emigration leads to taxation. Often, planning can prevent or limit that taxation. After emigration, discussions with the Dutch Tax Authorities about your place of residence may arise. The Dutch Tax Authorities will not always accept a place of residence abroad for tax purposes. To prevent discussions, the taxpayer will have to refrain from performing certain activities and strive to do others in order for residence in the relevant country to count for tax purposes as well.

Immigration

In the case of immigration, natural persons are, in principle, subject to tax in the Netherlands on their worldwide income. By thoroughly preparing for immigration, immigrants can avoid having to pay tax in the Netherlands on capital accrued abroad. This can be done by claiming a step-up for assets that generate taxable income or by qualifying for the 30% ruling.

This information may prompt you to contact us. Please call me on 06 2903 1814.