Substance requirements for Dutch conduit companies

In 2013, the Dutch government announced new measures against so-called Dutch conduit companies. These measures came into force in 2014. Conduit companies are Dutch companies which are used by foreign multinationals in order to lower the tax pressure on, among other things, finance and royalty flows.

These measures (‘substance requirements’) ensure that the management and administration of these companies are actually carried out in the Netherlands, with a capital which fits with the functions and risks of the company. The measures have a highly preventative character and try to prevent excesses going forward. The starting point of these measures is nonetheless that the Netherlands must remain attractive to foreign investors from a tax point of view.

Below you will find more information in our flyer. If you have customers or prospects for whom this subject matter is interesting, or if you have any questions after watching the video or reading the flyer, please do not hesitate to contact your international tax partner.

DownloadTax Advice Flyer New substance rules for Dutch flow-through entities.pdf