Digitale nieusbrief week 3

Amendment of law regarding holiday entitlements

A legal amendment has been proposed, with effect from 1 January 2012, pursuant to which: a. the statutory minimum holiday entitlements expire 6 months after the end of the relevant calendar year (instead of an expiry period of currently 5 years);

Supreme Court decides on inter company loan facilities in the Netherlands

On 25 November 2011 the Dutch Supreme Court ruled in 3 cases on loans not negotiated on commercial terms granted to affiliated companies. The Dutch Supreme Court provided Dutch tax practice with rules with respect to the fiscal treatment of loans.

Export of services to the U.S. to prevent withholding tax

The sale of products to customers in the United States by a Dutch company should not be subject to U.S. withholding tax. Also, the occasional provision of warranty services with respect to the products does not rise to the level of creating a permanent establishment (“PE”), i.e. a federal taxable presence in the United States. We note that a payment with respect to selling stand alone software might constitute a royalty under U.S. tax rules.

The IASB has released an updated work plan for its various projects

A number of projects has been deferred, the expected timing of other projects more precisely defined, and the deadlines for finalising IFRSs on leases and revenue recognition projects have not been explicitly stated within the timeframes outlined (which means that they are currently not expected before the end of 2012).

Supplier must charge German VAT if the arrival of the goods is not confirmed

As from 1 January 2012, German legislation will require businesses that supply goods from Germany to other EU countries to have a so-called “Gelangensbestätigung” or “Confirmation of Arrival” (CoA) in their administration. If the supplier does not have this CoA in its administration, it will be required to charge German VAT.

Further amendments to interest deduction rules announced

The Dutch State Secretary of Finance recently announced that new legislation will be proposed in 2012 to further amend the limitations on interest deduction in the Dutch corporate income tax.

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