Companies with undesirable tax structures can only apply for individual aid from the Dutch government if they meet two tax conditions in the area of location and transactions.The following two conditions are imposed on companies that request support:
1. Location: no establishment in a country with a too low tax rate.
The company requesting support is not based in a country with a low tax rate. These are countries with a profit tax rate of less than 9% and countries that are on the European "black" list. At present, these are a total of 24 countries.
2. Transactions: no payments to land with too low tax rate.
The Dutch branches of the company requesting support do not pay interest or royalties to branches of the group in countries with a too low tax rate and countries on the European list. The condition of the place of business also applies to participating interests and the direct shareholders of the company requesting the aid. Only those shareholders who own more than 10% of the shares are considered. In addition, an exception applies if a company with participations actually has real operational activities in countries with a too low tax rate.
Since it may be necessary in this corona crisis to act quickly if a company is in difficulty, it will still be possible to provide support if the company still meets the conditions within a period of in principle 12 months. In the conditions for the granting of aid, specific agreements are made about this. The decision fits in with the many measures that this cabinet has already taken to tackle tax avoidance. This clears up unwanted tax structures and money will no longer flow to these countries without taxation.
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NAZALI TAX & LEGAL |