Are you losing money because of Tax Equalization? – Tax Technology offers you insight!
A common agreement in the world of cross-border employment is the ‘tax equalization agreement’ between an employer and employee. Under this agreement, an employee does not pay more or less tax during their secondment than the tax they would have paid had they continued to live or work in their home country.
Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting signed by the Netherlands and other countries
On June 7, 2017, the Dutch Minister of Finance Dijsselbloem and other high-level representatives of 67 countries representing 68 jurisdictions signed the Multilateral Convention (“Multilateral Instrument” or “MLI”) to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS) and improve dispute resolution mechanisms.
Internet consultation on tax treaty policy and designation of low-taxed states
On September 25, 2018 the government launched an internet consultation, giving interested parties the opportunity to raise issues that are important to them relating to i) Dutch tax treaty policy and ii) the designation of low-taxed states with a view to – first of all – the application of the measure on Controlled Foreign Companies (‘CFC’s’) proposed on Budget Day.
We will briefly address these two aspects of the consultation
Dutch Lower House of Parliament passes Bill on ratification of the MLI
On February 12, 2019 the Dutch Lower House of Parliament passed the Bill for the ratification of the Multilateral Convention (“MLI”) to Implement Tax Treaty-Related Measures to Prevent Base Erosion and Profit Shifting (BEPS) and improve dispute resolution mechanisms. Noteworthy is that the Lower House also agreed to change the MLI position of the Netherlands with respect to preventing the artificial avoidance of permanent establishment status.