tax opportunities - investing through the netherlands

Investing in Europe through the Netherlands

2015

member of

• The Netherlands is often chosen as gateway to Europe for various reasons

• Next to operational benefits (workforce, logistical framework, multilingual

environment), the Netherlands offers various tax incentives for companies that are

establishing and growing their European footprint.

• The Dutch tax inventive scheme is also growing with your business presence in

Europe.

• We distinguish the following situations an growth scenario’s:

1. Start: Exporting to Europe via the Netherlands using independent distributors

2. Growing: Setting up a local sales force from private dwellings employees

3. Professionalize: Hiring an office space for European business growth

4. Mature: Expand office into an (intermediate) European holding company with

subsidiaries/branches

How start up business in Europe using the

Netherlands

Exporting goods to Europe via the Netherlands

Idea: appointment of Dutch VAT agent

and VAT license to deliver to

independent distributors or clients. No

physical presence in Europe

Benefits:

1. Limited or no European tax

compliance outside Netherlands

2. No cash outflow import VAT

3. Highly developed logistical

framework in Netherlands

Considerations:

• Tax qualification independent

European distributors

Foreign Company

EU Clients (B2B, B2C)

Flow of goods via NetherlandsAppointment Dutch VAT agent

Growing - Setting up a local sales force from

private dwellings employees

Idea: hire local workfoce and no office

space

Benefits:

1. If planned properly no Dutch

corporate tax compliance and

profit allocation

2. No need to file annual accounts

3. Low investment to get near the

European customer

Considerations:

• Negotiation authority employees

Foreign HQ


Working from private dwelling (Netherlands) and visit (EU) customers

Hiring an office space for European business

growth

Idea: hiring office space in Netherlands

and concluding contracts with EU

partners and clients via the

Netherlands

Benefits:

1. Limited tax compliance in other

EU countries

2. Straight forward tax compliance

and profit allocation in the

Netherlands

3. Increase visible footprint

(presence) is commercially positive

Considerations:

• Profit allocation, VAT

Foreign HQ

NL Office Space(Dutch Branch)


Profit Allocation, European VAT framework and remuneration framework employees require consideration

Expand office into an (intermediate) European

holding company

Idea: open office in other EU countries

and use the Netherlands as holding

country

Benefits:

1. No taxation of profits repatriated

to the Netherlands

2. No Dutch withholding tax and

Dutch taxation

3. Attractive benefits for expatriate

workers

4. Standardized tax compliance and

red carpet treatment Dutch

authorities

Considerations:

• Sufficient Dutch presence (office)

Foreign HQ

BV

EU companiesNon EU

companies

Coop (European HQ)

Fiscal unity

Dutch Tax Planning Ideas

Some Dutch tax planning examples

CV-BV

• Benefits:

i. (US) tax deferral

ii. Limited Dutch tax leakage due to

participation exemption and no

withholding tax on interest and

royalties. Dividend to be reduced

to 5% or even 0% (Coop/treaty)

iii. Reduction (any) foreign

withholding tax (treaties/EU)

• Main considerations:

i. Beneficial ownership and

substance BV

US

CV

BV

Opco Opco

Dividend

Royalty

Interest

Dividend

Royalty

Interest

Private equity

• Benefits:

i. No Dutch tax leakage due to

repatriation profits Targets to

investors

ii. No Dutch interest withholding tax


i. Funding Dutch acquisition entities

and effective interest deduction in

Netherlands

Limited Partnership

BV

Target Target

Coop

General partner (Private Equity

managing investment)

LP Non transparant NL

perspective

Investors

Fiscal unity

Innovation box

• Benefits:

i. 5% taxation of IP related income

ii. No need to have patents

iii. Also economic ownership of IP in

Netherlands is sufficient. Legal

protection can be done in US

iv. Still contract R&D is possible


i. Determine allocation income IP

ii. For contract R&D to non-Dutch

entities 30% margin (EU/BEPS)

Foreign entity (non Dutch)

BV (owning IP, not

necessarily a

patent)

Opco Opco

BV acquires and redevelops IP or start developing IP from scratch

Income attributed to IP subject to 5% CIT

Contract R&D to BV

Contract R&D to BV

Informal capital contribution deduction

• Benefits:

i. Interest deduction and no effective

interest pick up in other countries

ii. Based upon jurisprudence and

standard Dutch ruling practice

available and applied

iii. Structure can also be applied with

inter alia contributed IP. Deemed

license fee deduction.


i. Transfer pricing adjustments

outside the Netherlands.

US

CV

BV

Opco Opco

Non-

interest

bearing

Deemed

interest

deduction

Interest

bearing

loan

Our client service approach

Our vision results in the following cornerstones we believe are important when

servicing our customers:

• Our advices should be practical and understandable and clearly stipulating the

‘way forward’

• Clients will have one highly experienced point of contact

• We take an integrated approach in tax matters, since business and the different

(international) taxes ‘interact’ with each other

• Advice should be embedded in the context of the business

• To identify opportunities and detect tax risks in an early stadium, we organize

client service meetings on a regular basis

• Our aim is to provide a reply within 24 hours

• We believe it is important to be clear on the deliverables, pricing and planning

• We have an industry focus and keep close contact with all the relevant

institutions (tax authorities, auditors, legal advisors etc)

Client Service Approach

• Fisconti Tax Consulting is specialised in providing tax consultancy services to

businesses and has offices in The Hague and Amsterdam

• Our clients are Dutch and multinational companies ranging from start-up

businesses to long-time established and world’s leading businesses

• Experience is absolutely essential for providing tax consultancy of the highest

quality, so we have all gained several years workings experience at the big four

• Fisconti’s aim is to fully understand your business and to be considered a logical

and vital extension of your organization.

• Fisconti is part of an international network of independent tax consultants

specialized in corporate taxation, the Corporate Tax Alliance (www.corptax.org).

This is a global network and active in more than 30 countries.

About us

http://www.corptax.org/

Work Process

analysis

• Investigate the business set up/value chain and corresponding tax, economic and legal framework as building blocks of the solution

design

• Use a balanced approach and design a solution that is understandable and meets the requirements of the different stakeholders

implement

• Prepare a step plan or project management plan and provide for proper education and involvement of the stakeholders to increase acceptance and understanding to achieve a timely and cost efficient implementation

Guido is the owner of Fisconti Tax Consulting and has more than 15 years experience in Transfer Pricing and International Taxation issues

From this, he has extensive experience with, amongst others:

Advise and assistance with the design and implementation of tax efficient structures via the Netherlands (corporate tax, VAT and wage tax)

Obtain advice certainty and rulings from tax authorities

Advising, implementation and documentation with respect to cross border and (Pan) European transfer pricing projects on behalf of clients in different industries

Assist clients with the implementation of (cross border) restructurings

Assist clients with global mobility issues (wage tax, social security)

Guido is a full member of the International Fiscal Association and holds various master degrees (Tax Law, Tax Economics, Finance and post Master in International Taxation and European Tax)

Guido is the former European RSM Head of Transfer Pricing and contributing member of the European Tax Structuring and European Tax Group. Guido started his career within PWC.

Resume Guido van Asperen

The Corporate Tax Alliance

• Fisconti Tax Consulting is specialised in providing tax consultancy services to

businesses and has experience in a broad range of tax advisory services, such as:

• Tax due diligence (VAT, CIT, wage, transfer pricing)

• Tax incentive planning (wage tax reduction, tax credits, investment deduction)

• Obtaining advance certainty from local tax authorities (rulings APA/ATR)

• Designing transfer pricing strategy and documentation (loans, royalty, business)

• Assistance with corporate restructurings (merger, liquidation, asset transfer)

• Wage tax and also global mobility services for expatriate employees and board

members (Nedeco, option scheme, salary split, 30% ruling, exit taxes etc)

• Tax assistance in greenfield operations and provide European project management

for companies expanding or entering the European market

• VAT optimization and management

• Intellectual property planning (patent box, contract R&D etc)

Our service offering – Tax advisory services

Mr Guido van Asperen

[email protected]

+31 6 15041623

President Kennedylaan 19

2517 JK The Hague

The Netherlands

www.fisconti.nl

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tax opportunities - investing through the netherlands

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