Netherlands Will Soften Exit Tax Rules

Recently the Second Chamber of the Dutch parliament has approved a bill submitted by Financial State Secretary Frans Weekers amending existing legislation regulating exit tax.

The bill gives the choice to companies relocating abroad regarding terms of settlement of their final tax liabilities to the Dutch tax authorities.

According to the bill, which is in line with a ruling from the European Court of Justice issued in 2011, now the final tax liabilities must not have to be settled immediately upon redomiciliation. Companies may postpone the payment of the so-called “exit tax”, if a bank guarantee is in place. Interest on the unpaid tax amounts will also be charged. Taxpayers also may choose the option of paying the tax due in ten equal installments.

The exit tax is paid by companies relocating their actual headquarters to another EU state. The tax is calculated on the base of the assets value at the time of redomiciliation.