The Dutch Ministry of Finance issued a draft decree on 8 March on tax measures intended to soften a potential no-deal Brexit.
According to Bart Le Blanc, tax partner in the Amsterdam office of law firm Norton Rose Fulbright, the Netherlands is ‘looking to prevent UK companies from losing out on attractive tax benefits and exemptions in the Netherlands, for example, tax consolidation schemes, which only apply to EU residents’.
‘This decree deems the UK still to be part of the EU for the current tax year FY 2019 (or at least the current financial year, if different from the calendar year), and will be beneficial for both UK and Dutch businesses that have activities in both jurisdictions. It guards against potential increased tax liabilities for UK companies that could result from the UK assuming third country status on March 29, 2019 in the event of a no-deal Brexit’, Le Blanc explained.
This decree will be supplemented later this month with rules relating to VAT on goods in transit to or from the UK around the time of the UK’s withdrawal, Le Blanc added.
The Dutch Ministry of Finance issued a draft decree on 8 March on tax measures intended to soften a potential no-deal Brexit.
According to Bart Le Blanc, tax partner in the Amsterdam office of law firm Norton Rose Fulbright, the Netherlands is ‘looking to prevent UK companies from losing out on attractive tax benefits and exemptions in the Netherlands, for example, tax consolidation schemes, which only apply to EU residents’.
‘This decree deems the UK still to be part of the EU for the current tax year FY 2019 (or at least the current financial year, if different from the calendar year), and will be beneficial for both UK and Dutch businesses that have activities in both jurisdictions. It guards against potential increased tax liabilities for UK companies that could result from the UK assuming third country status on March 29, 2019 in the event of a no-deal Brexit’, Le Blanc explained.
This decree will be supplemented later this month with rules relating to VAT on goods in transit to or from the UK around the time of the UK’s withdrawal, Le Blanc added.
