New policy statement: Approvals for a Dutch fiscal unity in a European context

A Dutch fiscal unity for corporate income tax has been approved subject to certain conditions:

  1. Between two - or more - Dutch sister companies held by a parent company established in another EU/EEA member state.
  2. Between a Dutch parent company and one - or more - Dutch sub-subsidiaries owned held by an intermediate holding company established in another EU/EEA member state.

Under the fiscal unity facility, the results and the equity of the fiscal unity members are joined, and corporate tax is charged as though there were a single taxpayer. A few advantages: mutual settlement of results and only one corporate income tax return.

To illustrate:


On 30 December 2014 State Secretary for Finance, Mr. Wiebes, published a decision containing a policy statement on the basis of which - in anticipation of changes in legislation - a fiscal unity as described in situation I and II has been approved. The decision follows jurisprudence of the European Court of Justice and the Amsterdam Court which concluded that Dutch fiscal unity regulations for corporate income tax purposes conflict with the European freedom of establishment.

The decision changes nothing for existing fiscal unities. It offers possibilities for Dutch entities in an international (European) corporate structure. The existing fiscal unity requirements also apply in new situations.

Should you require further information about the possibilities, advantages and/or disadvantages of a tax entity for corporate tax at a European level, please contact your advisor at Baker Tilly.