Prior consultation or ruling with the Dutch tax authorities

Not sure what the Dutch tax consequences of your situation or intended actions are?

MFFA Belastingadvies | Tax Advice

Prior consultation or ruling with the Dutch tax authorities

There could be many reasons why you are not sure which tax law and regulations apply to your situation in the Netherlands. In that case, you would like certainty in advance or a ruling with the tax authorities in the Netherlands. Fortunately, it is possible in the Netherlands to request a statement of position from the tax authorities in prior consultation.

In practice, we often see tax situations in which clients would like to have certainty in advance about their Dutch tax position. The following situations can be considered for certainty in advance:

  • Cross-border working/transactions;
  • Do I qualify as tax resident in the Netherlands;
  • Minimum salary requirements;
  • Emigration tax issues;
  • Having a substantial foreign interest;
  • Receiving dividends;
  • Is there a permanent establishment in the Netherlands?
  • Does tax have to be paid in the Netherlands?
Overleg belastingdienst
What is clear in any case, is that certainty in advance is desirable in such situations. This is possible, you can enter into prior consultations with the Dutch tax authorities in the form of a so-called position statement or ruling. As a result, certainty can be obtained in advance about the application of tax laws and regulations.
In the prior consultation, we submit your situation, together with a tax analysis, to the Dutch tax authorities. We ask the tax authorities for a position statement, so that you know in advance what the tax consequences are.
The Dutch tax authorities are bound by this commitment based on the situation as we have described it in our letter.
How does prior consultation or a ruling request work?
Prior consultation/ruling request meets a need of many private individuals and entrepreneurs by providing certainty in advance about the tax consequences of the intended actions. The tax consequences may relate to, for example, personal income tax, wage tax, corporate income tax, VAT or foreign tax law and tax treaties.
Prior consultation is also referred to as a ‘ruling’. By obtaining certainty in advance, it is easier to comply with tax obligations and disputes and possible fines can be avoided. As a result of the prior consultations, the Dutch tax authorities have already provided legal certainty in advance.
In order to actually obtain a position statement through prior consultations, the request must be complete in terms of facts and circumstances and contain a clear tax analysis. In the prior consultation, a position must therefore be taken, which can be assessed by the inspector. The position must be sufficiently substantiated. This means that the tax analysis must be set out on the basis of relevant tax legislation, regulations and jurisprudence. The request must be made in writing. It is important that the competent tax office of the tax authorities is found for the client.
We have good contacts with the Dutch tax authorities and after submitting the request we have contact with the relevant tax inspector in order to obtain a suitable position.
Conclusion prior consultation/ruling request Dutch tax authorities
Are you not sure what the Dutch tax consequences of your situation or intended actions are? Do you want to avoid a dispute and/or fine with the Dutch tax authorities? It is then advisable to enter into prior consultations with the Dutch tax authorities. Many subjects are not unambiguous because jurisprudence/case law often also applies. We therefore always advise to enter into prior consultations if certainty is missing. We are happy to help you with this by drawing up a request for a position statement. Contact us for more information.
Specialist in: Expats | International Companies , MFFA Belastingadvies | Tax Advice
Jeroen Mijlof graduated in economics and tax law at the University of Groningen. He has + 15 years’ experience in National and International Tax Law for both individuals and companies. Before MFFA he worked at the Dutch tax authorities, KPMG Meijburg and RSM International Tax Services .