Over the last few years, the government of the Netherlands has been keen to be seen to be taking decisive action against tax evasion. 1n July 2019, for example, the government announced its plan to close loopholes in which companies avoid tax by taking advantage of the differences in tax systems of countries, the so-called hybrid mismatches. State Secretary Menno Snel sent a bill to that effect to the House of Representatives. This bill was one of the measures taken by this cabinet to combat tax avoidance.
The ATAD2 (Anti Tax Avoidance Directive) bill is designed to stop internationally operating companies from taking advantage of the differences between the corporate tax systems of countries. These so-called hybrid mismatches ensure, for example, that payment is deductible, but is not taxed anywhere, or that one payment is deductible several times.
The most famous example of a hybrid mismatch is the CV / BV structure, also known as the "piggy bank at sea". Companies from the United States have been notoriously able to postpone taxation of their global profits for a long time with this structure. But thanks to the measures from ATAD2, the Cabinet is ending the fiscal attractiveness of this structure.
A follow-up to previous measures
ATAD2 is a logical continuation of ATAD1. ATAD1 entered into force on January 1, 2019, and addressed other forms of tax avoidance. This has led, among other things, to the introduction of the so-called earnings stripping measure, a general interest deduction limitation in corporate tax. The bill was presented to the House of Representatives in July 2019 contained further measures against hybrid mismatches.
The majority of the measures in the bill to implement ATAD2 came into force on 1 January 2020. Other European countries have also introduced ATAD2, which was welcomed by the government. Hybrid mismatches are most effective when done on an international basis.
Background to ATAD2
The introduction of ATAD2 was one of the measures taken by this government to combat tax avoidance. In addition, the method for issuing rulings with an international character was tightened from 1 July. The cabinet is also preparing legislation to levy a withholding tax on interest and royalties by 2021, with a very targeted approach to a cash flow of 22 billion euros to low-tax countries.
And more tax avoidance measures are planned. In 2024, for example, the Dutch government plans to bring in a new withholding tax on dividend flows that will apply to low tax jurisdictions. This will herald another important stage in the fight to stop tax avoidance. The new tax is planned in addition to the withholding tax that will be imposed on interest and royalties from 2021.
The new tax will allow the Netherlands to tax dividend payments to countries that levy hardly any taxes and will also help reduce the use of the Netherlands as a conduit country. The tax will be levied on countries with a corporate tax rate of less than 9% and will also apply to countries currently blacklisted by the EU blacklist. These are not half-hearted measures by any means.
Any questions? Contact our business consultants for more information.
Are you a business owner who is based in a country other than the Netherlands? Do you supply services or goods to the Netherlands? If so, you might be classed as a foreign entrepreneur in terms of VAT. You may need to file a turnover tax return in the Netherlands and you might also need to pay VAT in the Netherlands. ICS can provide you with more information about the latest VAT regulations in the Netherlands as well as calculating VAT, filing VAT returns, paying VAT, and how to deduct or claim a VAT refund.
VAT registration for foreign business owners
In certain cases, a foreign entrepreneur who has to cope with Dutch VAT can opt to register for VAT with the Dutch tax authorities.
This is a possibility, for example, if a businessman does not want to offer bank guarantees, as is a requirement for General Tax Representation. Another benefit is the fact that the latter is more straightforward to arrange than a General Tax Representation permit.
There are certain disadvantages for a non-Dutch national to register for Dutch VAT. This is because foreign entrepreneurs are not entitled to a permit under Article 23 (VAT reverse charge) because it is only for people who live in the Netherlands as an entrepreneur or are established there. Since the VAT cannot be transferred it is a given that it must always be paid.
VAT on foreign receipts
First of all: all expenses must be made for your business can be deducted. If so: you can deduct the costs.
For VAT: on hotels outside the NL, VAT of the country of the hotel will be applicable.
So for example you stay in a hotel in Germany, German VAT will be applicable. You can’t deduct this German VAT in your Dutch VAT declaration. There are possibilities to ask this VAT back with the German tax authorities, but a threshold applies and it is a time-consuming process.
This is therefore only interesting when it concerns large amounts. The costs of the hotel can of course be deducted from the Dutch profit. For airline tickets no VAT is applicable. You can deduct the costs of the profit (if it is a trip for business).
It would good to discuss with your suppliers when it is possible that suppliers do not charge you VAT. If you have an active VAT number in the Netherlands, they can verify that with the EU Vies register. And see that they are allowed to invoice you at 0% reversed charge. For other countries outside the EU, other rules apply.
How to apply for a Dutch VAT number
When foreign entrepreneurs want to apply for a Dutch VAT number, they only have to submit a few documents, but they must first complete an application form from the tax authorities. As soon as the Dutch VAT number is supplied, a foreign entrepreneur is legally able to trade in any country within the European Union.
Adequate VAT administration is needed for this and this is where a company such as ICS can provide valuable assistance. An international company can opt to have this administration undertaken by an administration office based in the Netherlands. The Tax and Customs Administration carries out strict checks, especially when reclaiming VAT so it is extremely important to ensure that the correct paperwork is always in order. If the administration is outsourced to an accounting office, this office is not responsible for the activities with which the foreign company is involved in the Netherlands.
Do you want assistance with applying for a VAT Registration for foreign entrepreneurs? The experienced VAT specialists at ICS will help you on your way.
Do you market new innovative products based on your own R&D? Then you may be eligible for the Innovation Box. The Innovation Box reduces corporate tax for profits from innovative activities. As of 2018, an effective tax rate of 7% applies instead of the maximum rate of 25%. The tax authorities implement the Innovation Box.
If you want to use the Innovation Box, you will need to submit an R&D statement and in some cases also a patent. This scheme is only of interest to companies subject to corporate tax, such as private limited companies. Contact ICS for more information about the potential benefits of the Innovation Box.
The small-scale investment allowance (Kleinschaligheidsinvesteringsaftrek or KIA)
Do you invest in business assets? Then you can deduct an amount from the profit with an investment deduction. You are then eligible for a small-scale investment allowance (KIA). The amount of KIA depends on the amount invested.
Who is eligible?
You may be eligible if your company is established in the Netherlands and you are liable to pay income tax or corporate income tax;
You invest in company resources for your company.
In 1 year you invest a certain amount in new or 2nd-hand business assets. In the table of the Tax Authorities, you will find the percentages for the investment deduction.
Divestment addition
Do you sell or donate your assets within 5 years of your investment? And is the total value more than € 2,300? If so, you must repay part of the deduction via the divestment addition.
How can you apply?
You can apply the small-scale investment deduction to your income tax or corporate tax return.
Energy investment allowance (EIA)
If you invest in certain energy-saving assets and sustainable energy, you may deduct part of the investment costs from your taxable profit via the EIA scheme. This means you pay less income tax or corporate tax. Contact the tax specialists at ICS to find out if you are eligible to do this.
Environmental investments
It is sometimes possible to benefit when you make investments to limit damage to the environment. Investments that are on the Environmental List provide an additional deductible item on the Environmental Investment Allowance (MIA) or you can write off accelerated (Random depreciation of environmental investments (Vamil)). This reduces your income tax or corporate tax. The MIA / Vamil scheme applies to, among other things, environmental measures in industry, agriculture and transport.
In 2019, the Council of the EU today adopted a new framework for the screening of foreign direct investment into the European Union, completing the legislative process on this proposal.
As a result, the new framework will enter into force in April 2020. The new framework, based on a Commission proposal presented by President Juncker in his 2017 State of the Union address, will contribute to protecting Europe's security, public order and strategic interests as it concerns foreign investment in the Union.
Commenting on the Council's decision, President Jean-Claude Juncker said: "The decision taken today demonstrates the EU's ability to act quickly when the strategic interests of our citizens and our economy are at stake. With the new framework for investment screening, we are now much better equipped to ensure that investments from non-EU countries actually serve our interests I have pledged to work for a Europe that protects both trade and other areas, with these we are fulfilling a crucial part of our promise with the new legislation. "
Cecilia Malmström, Commissioner for Trade, said that she was very pleased with the decision made by the Council as the EU benefits greatly from foreign investment, which plays a crucial role in the economy. However, there has recently been an increase in investment in strategic sectors, which has led to a healthy public debate on this topic. This new framework provides a much better position to oversee foreign investment and protect Dutch interests. She is now looking forward to working closely with the Member States for the effective implementation of this new legislation.
Within the new framework:
A cooperation mechanism will be set up to allow the Member States and the Commission to exchange information and raise concerns regarding specific investments;
The Commission will be able to deliver opinions if the security or public policy of more than one Member State is compromised by an investment or if an investment could affect a project or undermine a program of EU-wide importance, such as Horizon 2020 or Galileo;
International cooperation in investment screening will be encouraged, including through sharing experiences, best practices and information on common concerns;
certain requirements will be established for the Member States wishing to maintain or introduce a screening mechanism at the national level. Member States also still have the final say when the question arises whether or not to authorize a specific investment operation in their territory;
The need to work within short, business-friendly timeframes and with strict confidentiality requirements will be taken into account.
Following the approval by the Member States in the Council and the positive vote in the European Parliament on 14 February 2020, new EU legislation establishing an EU framework for investment screening will enter into force in the coming weeks, 20 days after its publication in the Official Journal. Member States and the Commission then have 18 months to make the necessary arrangements for the application of this new mechanism. Preparations are already underway, including the regular exchange of information and best practices with the Member States in the dedicated expert group established in 2017.
Background
Currently, 14 Member States have national screening mechanisms in place. Although they may differ in their design and scope, they have the same objective of maintaining security and public order at a national level. The several Member States are reforming their screening mechanisms or adopting new ones.
The EU has one of the most open investment schemes in the world, as recognized by the OECD in its Investment Restrictivity Index. The EU is the world's leading foreign direct investment destination: at the end of 2017, foreign direct investment into the EU by investors from third countries amounted to EUR 6 295 billion.
In recent years, the construction sector has been the fastest-growing sector for independent entrepreneurs. In 2018, there was a growth of over 7%, and the following year saw a growth of 5.3%, according to the senior sector analysts.
At the same time, there is a shortage of construction workers, a gap that self-employed entrepreneurs are currently diving into. After the crisis of 2008, many construction workers lost their jobs, but now they have the job of sorting them out as self-employed people.
The Netherlands is now widely regarded as one of the healthiest economies in Europe, according to recent surveys despite the impact of the coronavirus pandemic. Amsterdam is now perhaps the most popular European city for establishing a new company, as well as large corporations keen to set up regional headquarters serving the entire European area means that the construction industry has been transformed into one of the most extensively developed parts of the Netherlands' economy. It is also a welcoming country for international investors in the construction sector in other regions of the country.
At ICS, we have registration agents who can provide up-to-date information and advice on all you need to know to establish a construction company.
The Civil Code - The Environmental Licensing Law
The Construction Law regulations fall under the remit of the Netherlands' Civil Code, although there is also additional legislation with which construction companies are required to comply. One of the most relevant is the Environmental Licensing Law. This sets out the rules for a construction company in the Netherlands to comply with on building sites. The law encompasses the following:
The actual building of the property;
Any exemptions for the area planning;
Demolition of current sites;
Building on green spaces.
Dutch law is complex so contact ICS to help you navigate your way through the Environmental Licensing Law and the registration process of your construction company.
Registering your construction company in the Netherlands
You will need to register your company with the Dutch Companies Registrar. You might need to apply for certain licenses which will permit you to carry out construction works. For large construction projects this is highly recommended. For independent contractors, most construction workers do not need a license but simply a safety certificate. This is a 1-day course proving you understand safety at the construction site.
Organisations and businesses in the Dutch construction sector can apply for the all-in-one license for material features which may include:
The construction license;
The environmental license;
The exemption for zone planning;
The nature conservation permit;
The renovation license.
You should be aware that extra licenses and permits may be required depending on the nature of the work involved.
Contractors and independent workers generally do not need to apply for any licenses.
For help in establishing a company in the construction sector, please feel free to contact our ICS representatives in the Netherlands.
How to apply for Dutch EORI number
In the Netherlands, economic operators are identified by Customs by their EORI number. In other words, those who have to deal with Customs from a business perspective, for example by preparing a customs export or import declaration for goods, must be known to customs. This also applies to companies that have a Customs export or import declaration drawn up by, for example, a Customs agent, freight forwarder or logistics service provider. This declaration is made with an EORI number.
When do you need an EORI number?
An EORI number is required if you actually have contact with Customs. This is the case when a Customs declaration is independently filed, it is filed on your behalf, or you apply for a permit. This number (compiled or applied for by Customs) is activated when it is included in the Customs declaration. An EORI number is therefore essential for import- and export firms based in The Netherlands.
How can I look up an EORI number?
You can check another person's EORI number online via this link. This handy tool allows you to look up the EORI number of another person and check whether it is valid and actually exists.
Check EORI number
The Eori number code
The main component of this number already has a company in-house, namely the RSIN or BSN.
The EORI number consists of the letters NL + the RSIN (or BSN) and includes a 9-digit number in addition to the two letters NL. If the RSIN (or BSN) consists of less than 9 digits, this must be completed with zeros before the RSIN (or BSN) to the number of 9 digits (for example NL000123456). This whole forms the EORI number.
How can I apply for an EORI number?
Our tax specialists can assist you with requesting an EORI number for your firm. Our firms has completed dozens of successful EORI number applications for foreign entrepreneurs. Contact us for more information on requesting an EORI number.
EORI number at headquarters and branches
The EORI number is only linked to the head office (legal unit). The business units (branches) do not receive an EORI number. Branches use the EORI number of the head office. This also applies to branches from the other Member States.
EORI number at headquarters in another Member State
A company with a recognized permanent establishment that is not established in the Netherlands can obtain a Dutch EORI number. This should be evident from the fact that the Foreign Department of the Dutch Tax Authorities has assigned a tax number. It is then a self-contained entity.
EORI number at headquarters in a third country
A company established in a third country must have an EORI number if, for example, it wants to make a customs' declaration. The EORI number will also be issued in the Member State where it is intended to do this for the first time.
EORI number and representation
A company established in a third country without a recognized permanent establishment in the Netherlands can have a Customs declaration made in the Netherlands. This can be done by an authorized Customs agent or forwarder based on an Indirect Representation Authorization. The EORI number of this Customs agent or forwarder is mentioned in the declaration.
Considering to start an import or export company in the Netherlands?
Are you interested in opening an import or export company in the Netherlands? Or looking to learn more about the Dutch customs and goods shipment regulations?
The Netherlands is considered as a gateway to Europe, especially for trade and logistics. The Rotterdam Europoort (Gateway to Europe) harbour is one of the largest harbours in the world, and the biggest logistical harbor in Europe.
Our tax specialists in the Netherlands can offer complete accounting services and provide many you other financial solutions, whether a legal entity or a natural person. ICS finance professionals are able to help small businesses, such as sole traders, but they are also able to offer professional accounting and bookkeeping services to multinational corporations. Among the most frequently used accounting services offered by the ICS accounting firm include:
• Assistance with Dutch tax registration and compliance - businesses of all sizes in the Netherlands must be registered for tax purposes and submit various financial documentation, according to their structure as a legal entity;
• Advice on the fiscal framework in the Netherlands
• Filing annual accounts – our tax specialists in the Netherlands can help you gain a full understanding of the timetable for submitting the necessary financial documents and tax returns;
• Payroll and annual statements the Netherlands must submit annual statements;
• Financial advice on the management of a company in the Netherlands – this is a major factor which has a significant influence on the success of a company.
What do I need to know about the Dutch corporate accounting system?
Bookkeeping forms one part of the accounting system in the Netherlands and this broadly refers to the procedure and methods used to register all the necessary financial operations of a business, in accordance with the relevant law. Bookkeeping is a key part of the Dutch accounting system and must be completed with the applicable procedures, and ICS can advise you about these.
People who are interested in starting a business in the Netherlands or those who intend to expand an international company on the local market should be aware that bookkeeping is required to keep track of all the business records that are entered throughout the financial year. This coincides with the calendar year in the Netherlands.
Bookkeeping procedures must follow the International Financial Reporting Standards (IFRS), which acts for accounting procedures adopted at the level of the European Union. However, when it comes to small businesses registered in the Netherlands, accounting principles and bookkeeping procedures can vary to some extent.
A small company in the Netherlands, for example, can opt to comply with the Dutch Civil Code (Book 2), the Dutch Accounting Standards for small entities or medium-sized companies, or the IFRS principles blended with sections of the Dutch Accounting Standards. At ICS, our team of tax specialists can provide advice on the best accounting principles for your business. You should also be aware that the accounting regulations are set out by the Dutch Accounting Standard Board, the primary regulatory organisation in the sector.
How should bookkeeping be done in the Netherlands?
Bookkeeping provides a complete record of the businesses' financial circumstances and, therefore, the methods and procedures used by any accountant should be able to give a coherent picture of the firm’s transactions and its fiscal status at a precise moment. The rules surrounding bookkeeping procedures in the Netherlands stipulate that the financial data submitted by a business must be reliable, clear and comparable - and these are statutory requirements.
Moreover, all bookkeeping documents must be completed in accordance with the accounting principles of this country. Business owners should also be aware that the bookkeeping procedures vary according to the legal entity of the company.
If you are interested in operating a company in the Netherlands and need professional accounting services, contact ICS. Our team of finance specialists is on hand to deliver expert accounting and bookkeeping services in the Netherlands.
The UK is now no longer part of the EU and is now undergoing a transition period until the end of 2020. During this time, negotiations are underway, but it is looking increasingly likely that the UK will crash out of the EU with a 'no-deal Brexit'. The current regulations surrounding trade, transport and business will continue to apply throughout the transition phase.
At the end of June, prime minister Boris Johnson promised to proceed with a no-deal Brexit if ongoing talks with the EU fail to achieve mutually beneficial trade agreements. He had already formally notified the EU that he will not apply for the option of a two-year extension to allow more time for negotiations. Johnson has also made it clear that the UK is preparing to leave under what he terms as an Australia-type deal with the EU, a country which does not have a free trade agreement with the EU.
Brexit and corona
After the impact of the coronavirus pandemic on the UK's economy, which continues to be terribly mismanaged by the UK government; the thought of the no-deal Brexit is very concerning. Amid rising unemployment rates that are predicted to be the worst since the 1980s, many residents of the UK are worried that a no-deal Brexit will lead to food shortages, increases in crime and poverty, and widespread social unrest. The future does not look bright for the UK.
Current negotiations are having to take place via videoconferencing because of the pandemic, which is not conducive to the side-line chats that can help to resolve differences during trade talks. Unless something happens to shift the static dynamic, it looks like no-deal will be very likely at the end of the year, which, many economic experts agree, would be a terrible outcome for businesses, employment and public confidence in this most unusual of years
If you operate a business in the Netherlands, there is a strong chance that you will need to submit your annual financial accounts with the Dutch Chamber of Commerce (KVK). You must do so if you are responsible for:
A public limited company (NV);
A private limited company (BV);
A mutual insurance association;
A cooperative association;
A general or limited partnership (VOF or CV resp.) where all the managing directors are foreign nationals;
A foundation that is responsible for one or several companies with a certain amount of turnover.
What are the annual account publishing requirements?
The Dutch authorities take the publishing of annual accounts very seriously and it is essential to meet the deadline. Your annual accounts must be submitted to the Chamber of Commerce (KVK) within 8 working days after they have been formally adopted. If you have been able to adopt the annual accounts in time, it is possible to offer your provisional accounts. Your accountant or auditor will be able to advise you about the deadline as this varies according to the legal set-up of your company, but it will definitely be within a year from the start of the financial year. If you miss the deadline, you will probably have to pay a fine. There is also the chance that you may be held personally liable for company debt in the event of bankruptcy - even if your company is structured to prevent this occurrence.
The way in which you publish your annual accounts largely depends on the size category of your company - micro, small, medium or large. If your company is classed as small or micro you are advised to file your own accounts online which is a straightforward process. If you use an intermediary, they must use the Standard Business Reporting software (SBR) when submitting returns online.
These accounts are public records. If you are interested in viewing any businesses annual accounts, you can order them online via the Chamber of Commerce.
Foreign legal entities
Foreign legal entities are also obliged to submit their annual accounts in the Netherlands:
If they are from countries not part of the EU with a branch in the Netherlands if they are required to submit yearly accounts in the country of domicile.
Foreign legal entities that may be registered in their country of origin but do not have an active relationship with that country and solely operate in the Netherlands.
Circumstances when you do not need to file your annual accounts
There are several situations where you don't need to submit your annual accounts. This mainly applies to daughter companies (subsidiaries) and small private limited companies for the purposes of pensions or annuities. Nonetheless, you will be obliged to publish a declaration of consent or an accountant's report. In extraordinary circumstances, such as bankruptcy, theft or fire, you can ask for an exception to the obligation to file your annual accounts.
Contact our accounting and tax specialists for more information.
The Netherlands is a small country but ranks fourth in the list of most competitive economies in 2019. This ranking is prepared annually by the World Economic Forum (WEF). With the fourth position, the Netherlands is the most competitive economy in Europe and has even surpassed Switzerland.
The Netherlands is now the most competitive economy in Europe for the first time
The WEF's Global Competitiveness Index (GCI) is a particularly interesting indicator because it reveals something about whether the Netherlands is one of the most competitive economies in the world. The Netherlands held fourth place in 2019 and has risen two positions compared to last year. The top 5 of the global rankings are Singapore, USA, Hong Kong, the Netherlands and Switzerland. With the 4th position, the Netherlands is the most competitive economy in Europe for the first time and surpassed Switzerland. In 2016 and 2017, the Netherlands was already fourth and the most competitive of the European Union, but then still had to leave Switzerland. According to the WEF, the Dutch economy has become much more agile due to an entrepreneurial culture, flat organizations and the encouragement of the growth of innovative companies.
The GCI components explained in more detail
According to the GCI, the Netherlands has a very open dynamic economy (2nd position) with a high-quality physical infrastructure (2nd position), a stable macroeconomic policy (1st position), an efficient government with well-functioning institutions (4th position), and a very well-trained workforce (4th position).
There are also a number of GCI components where the Netherlands scores less internationally. For example, the Netherlands lags behind in the application of ICT (position 24). There is a decrease in seven positions compared to 2018. The low position of the Netherlands in the application of ICT is remarkable because the Netherlands scores well in the application of ICT in other rankings, such as the DESI. The Netherlands also lags behind in innovation, and in particular in terms of R&D investments (position 17).
Did you know that the Netherlands is one of the five countries in Europe that fall within the world's top fifteen corporate tax havens? And did you know that some of the 2021 changes to the corporate tax rates will make it an even more favourable location for companies? Let's look at what the changes could mean for you and your business.
Changes in corporate tax rates as of 2021
The corporate tax rate on profits onto € 245,000 will remain at 15% in 2021.
Tax rate adjustment
As of January 1, 2020, no corporate tax is charged on corporate income tax if an entrepreneur submits the return for the first day of the sixth month after the period over which the tax is levied (which is usually June 1) and the return filed is correct.
Announced corporate tax measures from 2021
The cabinet also plans to introduce three more measures for corporate tax. These measures will be included in the 2021 Tax Plan.
Increasing the 'rate' of the innovation box
If companies make a profit from certain innovative activities, they have to pay less corporate tax on this profit. The 'rate' of this innovation box is now 7%. This will increase to 9% from 1 January 2021.
Liquidation and strike losses less deductible
Businesses may incur losses if a business operation abroad or a subsidiary ceases. In many cases, they may now deduct these losses from the profit they make in the Netherlands. This so-called liquidation and strike loss scheme is being adjusted. The possibilities for companies to deduct these losses are limited.
No more discount if corporate tax is paid in one go
Companies can now receive a discount under certain conditions if they pay corporate tax in one go. This discount will disappear from 1 January 2021.
Other tax components of the National Climate Agreement are also incorporated in the 2020 Tax Plan. These comprise a rise in tax on fossil fuels such as natural gas but lower taxes on electricity. Moreover, the majority of companies will be subject to a rise in renewable energy surcharge, while private households will enjoy a reduction in this surcharge. Additionally, the time-limited exemption from vehicle purchase tax for electric vehicles, which expires in 2021, is now to stay in place until 2025. However, the private use of electric company vehicle tax will gradually rise from four to eight percent.
Not only has the tax office changed certain regulations. The Dutch companies have changed as well in tax reporting requirements.
Dutch companies have never been more transparent in tax matters
Major steps have been taken by Dutch companies in the past five years to improve transparency and reporting on such a complex and controversial subject as taxes.
According to PwC's Bob van der Made, the report clearly shows that Dutch companies have never been more transparent in tax matters than they are now. The companies scored an average of 43 percent on the six good tax governance principles and Oikos. This is considerably higher than the measured 25 percent in 2015.
Van der Made said that the Tax Transparency Benchmark has 'undeniably contributed to this result since 2015 through the balanced and objective approach of this annual survey. The ranking has even now been considered by the management of some companies as a useful, annually recurring benchmark for where they stand with regard to tax transparency, sustainability strategy, socially responsible behaviour and tax governance.'
There is a clear need to catch up on country-by-country reporting and third-party tax assurance. In its final verdict, the jury also emphasized that most Dutch companies can still make significant improvements in the country-by-country reporting components (making it clear that the business activities correspond to the tax payments in the relevant countries) and third-party tax assurance. (This involves having the internal processes and implementation of the tax strategy checked by an accountant so that an independent party can supervise it).
According to Van der Made, the report made it clear that country-by-country reporting and third-party tax assurance are not self-evident for most companies. He also drew attention to the special recommendations in the report for various stakeholders, namely: policymakers, politicians and tax authorities, NGOs, tax advisors, investors and universities.
The Netherlands tax office (Dutch source).
