In the Netherlands, 82 tax treaties are included in the MLI. The specific impact of the IML differs according to the tax treaties and depends on the position of the two countries. If you want to know if a company is affected by the MLI, BDO can help with this analysis. Below is a list of the countries with which the Netherlands has double taxation agreements. At the signing ceremony on 7 June 2017, the Netherlands presented its position on LML by listing its provisional reservations/notifications and containing 82 tax treaties which it wishes to bring down under the MLI as a secure tax treaty (CTA). On the one hand, measures to combat abuse have been introduced in national legislation and EU directives in the Netherlands. More recently, the OECD has published, as part of the Erosion and Profit Change Bill (BEPS), the Multilateral Instrument (MLI), which allows governments to implement minimum standards in existing tax treaties to combat contractual abuses. The 1969 tax treaty between the Netherlands and Ireland is not a ”covered tax treaty” under the MLI project, as the Netherlands and Ireland had been negotiating an entirely new tax treaty for several years. The countries with which the Netherlands negotiates double taxation agreements: until such an effective conflict resolution mechanism has been implemented or the allocation of benefits under the IML has been clarified, the Netherlands will reject Article 12 of the MLI. Article 12 of the Directive broadens the definition of an MOU by incorporating commission structures into its definition in the covered tax treaty. Residents and most non-residents are entitled to the exemption from double taxation through unilateral discharge provisions or tax treaties.

Measure 5 of IML: use of methods of eliminating double taxation If the Netherlands is the distributing company, this provision will be irrelevant given the broad national exemption from withholding tax, which has no detention period. However, the length of detention can be significant if the Netherlands is the recipient country. The 365-day period does not necessarily have to be completed before the dividend is distributed; it can also be completed after the shareholding has paid the dividend. However, it is not yet clear how withholding or refund is processed in the country of origin. The tax residence of a double residence will now be determined on the basis of a mutual agreement procedure. Until this procedure is completed, contractual benefits cannot in principle be applied. The Netherlands recently rejected this provision by requesting that, if the State of residence has already been established on the basis of an existing contract, there is no need to reapply for a POP. However, this situation is subject to conditions. implements the minimum BEPS standard for mutual agreement procedures, which aims to ensure an effective and timely resolution of contractual disputes. The bePS minimum standard is complemented by optional best practices. It is possible to distinguish the following categories of provisions: (i) minimum standards, (ii) options (opt-in) and (iii) reservations (opt-out).

The Dutch positions are as follows: with regard to minimum standards, the preambles of the CTA are amended to clarify that the CTAs have been concluded in order to eliminate double taxation without creating opportunities for non-taxation, a main test applies to all provisions of the CTA and a procedure of mutual agreement will be applicable to tax disputes. The Netherlands has also opted for a binding arbitration procedure, but has opted for the artificial prevention provision of stable settlement status through commission agreements. When the other jurisdiction of the contract makes a price adjustment of a minimum duration on the profits of a subject in that other treaty tribunal, it is required to require the courts to make an adjustment of the profits of a subject in its jurisdiction.