Advance Pricing Agreement Netherlands

If you need more information on Dutch international tax practices, please contact us. We are also pleased to assist you on the issues you have in the area of transfer pricing and international taxation. The APA team works separately from the Transfer Pricing Coordination Group (which has a transfer pricing audit function or, in this regard, at least coordinates the local tax inspector). Yet both are part of the DBA. The International Financial Affairs Department of the Ministry of Finance is responsible for processing POP applications. The law stipulates that associated companies should conduct transactions “on the length of their arms.” You are also expected to have transfer pricing documents. They use erroneous transfer prices and tax authorities could make serious corrections in recent years. By entering into an APA, you`ll get certainty about all your company`s transfer pricing issues. Taxpayers have considerable freedom to determine which (cash) transactions should be included in the APA and whether the APA will have more than one fiscal sovereignty. As a result, taxpayers are able to tailor presecurity to their specific needs. With regard to the role of the Dutch tax administration in POP cases, the DCA has the opportunity to seek advice and assistance from the Dutch tax administration, including the Transfer Pricing Coordination Group of the Dutch Tax Administration (CGTP), which is responsible for ensuring that transfer pricing issues are dealt with in a uniform manner.

BEPS` peer review procedure established that the organization of the competent authority in the Netherlands was of little risk that the function of the competent authority would not be exercised independently from the staff of the tax administration involved in the disputed correction. As noted in the Level 2 peer review report, the Netherlands has since taken steps to eliminate this risk, leading the Netherlands to be considered independent of this staff and the audit function of the tax authorities. The POP decree illustrates the role of the Dutch tax administration. Intragroup financial services (i.e. financing and/or licensed activities) are subject to the liquidation of financial services (from 2001 and updated in 2004). Companies considered financial services companies in these decisions are defined as companies whose activities cover at least 70% of financing and/or intragroup licensing activities (excluding participations). Note that pre-security can only be obtained in conjunction with presecurity by the appropriate transfer pricing method or arm compensation. The advantage of entering into a pre-price agreement is that the tax authorities accept the transfer pricing system of the subject. It can also be expected that the tax authorities will defend the taxpayer`s case in any future mutual agreement proceedings. Accon-avm can monitor your entire journey, from the application to the pre-price agreement. With you, we look at transfer pricing statements and transfer pricing method.

Contact one of the specialists of the international tax advice via international@acconavm.nl . An APA has a fixed validity period in the contract (usually four to five years).

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