Motion adopted to propose new legislation on Management Equity Plans
The Lower House of the Dutch Parliament has adopted a motion asking the government to propose new legislation with regard to what they call “carried interest”. Specifically, the government was asked to tax carried interest at the progressive personal income tax rate (top rate of 49.5%) for private equity structures.
Country by Country Reporting
Multinational entities with a consolidated turnover exceeding EUR 750 million are obliged to file an annual Country-by-Country (“CbC”) report. They must submit this to the Dutch tax authorities within 12 months of the end of the reporting year. Failure to comply with these Country-by-Country reporting requirements may result in significant administrative penalties.
Tax Audit
In a Tax Audit the tax authorities collect information in order to determine whether tax obligations have been complied with. The tax authorities can always question the taxpayer, either in writing or orally. They may also ask questions to third parties, for example the auditor. Tax Audit Assistance is advisable in case of a tax audit.