The Dutch Ministry of Finance on 11 May 2018 published a new transfer pricing decree that incorporates provisions from the OECD’s base erosion and profit shifting (BEPS) action plans (2015) and from the OECD’s Transfer Pricing Guidelines (2017).
The new Dutch transfer pricing decree (nr. 2018-6865, dated 22 April 2018) replaces a decree from 2013 (IFZ 2013/184M, 14 November 2013).
Concerning cross-border (intercompany) transactions, there is consensus among the OECD member countries with regard to the arm’s length principle as included in Article 9 of the OECD Model Tax Convention. The arm’s length principle has also been described in the OECD Commentary to Article 9 of the OECD Model Tax Convention and the 2017 OECD Transfer Pricing Guidelines. This arm’s length principle was codified in the Netherlands, in 2002 as section 8b of the Dutch Corporation Tax Act 1969.
The new Dutch transfer pricing decree provides insight into the interpretation of the arm’s length principle, and in particular, focuses on aspects for which the 2017 OECD Transfer Pricing Guidelines leave scope for domestic interpretation.
The main differences between the 2013 and 2018 Dutch transfer pricing decrees are:
For more information, contact a tax professional with KPMG’s Global Transfer Pricing Service group in the Netherlands:
Jeroen Dijkman | +31 (0)88 909 2543 | firstname.lastname@example.org
Jaap Reyneveld | +31 (0)88 909 1114 | email@example.com
Eduard Sporken | +31 (0)88 909 1618 | firstname.lastname@example.org
Read a May 2018 report prepared by the KPMG member firm in the Netherlands
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