10 June 2014

As from 1 January 2014, qualifying Group Financing and Licensing Companies established in the Netherlands must comply to certain specific substance requirements in order to avoid the automatic exchange of information with other states.

This new legislation aims to avoid the improper use of Dutch Financing and Licensing Companies for treaty shopping by offering the involved Treaty Partners/EU Partners full transparency about Dutch Group Financing and/or Licensing Companies which have no or only little substance in the Netherlands.

The new rules have direct effect and are applicable to all existing and new companies in the Netherlands. There is no grandfather rule.

Please click here for a summary of the scope of the new substance requirements and the impact which these new rules can have on existing and new structures in the Netherlands.

Every Dutch company is unique and it should be judged on a case by case basis if and to what extent the new substance requirements are applicable.

Please feel free to contact us for more information or if you wish us to assist you with reviewing your Dutch structure and advice on appropriate action.

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