Taxation in the Netherlands

Tax on Transactions 2010/11

Country Q&A The Netherlands

The Netherlands

Cees-Frans Greeven and Peter van Dijk Buren van Velzen Guelen NV

www.practicallaw.com/6-502-1645

TAX AUTHORITIES

1. What are the main authorities responsible for enforcing taxes on corporate transactions in your jurisdiction?

MAIN TAXES ON CORPORATE TRANSACTIONS

3. What are the main transfer taxes and/or notaries’ fees potentially payable on corporate transactions? In relation to each tax/fee identified, explain briefly:

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The Dutch Revenue Service (Belastingdienst) (DRS) is responsible for enforcing all Dutch national taxes. The DRS is divided into 13 geographic divisions. Generally, the place of residence of an entity or individual within The Netherlands determines which geographic division is competent. If that place of residence is outside The Netherlands, the Limburg division is usually competent. However, exceptions may apply to these general rules (for example, a company that is at least 70% engaged in financing activities falls under the Rotterdam/Rijnmond division). The competence of an individual tax inspector is, in principle, limited to the enforcement of one specific tax (for example, corporate income tax or value added tax). 2. Is it possible to apply for tax clearances or obtain guidance from the tax authorities before completing a corporate transaction? If yes, provide brief details, including whether clearance or guidance is binding.

Its key characteristics. What triggers it. Who is liable. The applicable rate(s).

Corporate Q&A

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Real estate transfer tax

Real estate transfer tax (overdrachtsbelasting) is charged on:

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The acquisition of real estate located within The Netherlands. The acquisition of rights in or to this property (including economic (similar to beneficial) as well as legal ownership).

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It is charged at 6% of the fair market value of the property (or, if higher, the sale price), and is payable by the acquirer. An...