Doing Business in the Netherlands 2012 - American Chamber of ...

Doing Business in the Netherlands 2012
In practice, these financial services companies (FSCs) only report a
small arm’s length spread as income for corporate income tax
purposes. For FSCs, special rules apply regarding the substance they
must have and regarding a minimum risk profile.
a) Substance
A Dutch FSC must have a minimum level of substance in the
Netherlands. The tax authorities have developed the following
minimum requirements:
1. At least 50% of all authorized directors are tax residents of the
Netherlands.
2. The directors residing in the Netherlands have the relevant
professional knowledge and skills to execute their obligations
as directors.
3. The (main) directorial decisions are taken in the Netherlands.
4. The FSCs (main) bank account is maintained in the
Netherlands.
5. The FSCs accounts are kept in the Netherlands.
6. The FSC is a tax resident of the Netherlands and is not
deemed a resident of any other country.
7. The FSC should have equity sufficient to perform the
activities that the BV is engaged in.
8. The FSC must have observed all applicable tax filing
requirements (such as, for instance, CIT, VAT, wage tax, etc).
b) Minimum Risk Profile
FSCs meet this condition in respect of borrowing and lending within
the group if their equity is at least equal to the lower of 1% of the total
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