 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
where to find Dutch tax literature.
Constitutional Foundation
The Kingdom of the Netherlands is a constitutional monarchy with a parliamentary
system. It comprises of three countries, referred to as the Netherlands, the
Netherlands Antilles (Bonaire, Curacao, Saba , St. Eustatius, and St. Maarten), and
Aruba. The administrative relations between these countries are dealt with in the
Charter for the Kingdom of the Netherlands. Each country has sovereignty over its
own tax system. The Tax Arrangement for the Kingdom (“Belastingregeling voor
het Koninkrijk” – BRK) regulates the tax relations between the countries and
follows to a large extend the OECD Model Convention.
According to Article 104 of the Dutch Constitution, taxes imposed by the Kingdom
shall be levied pursuant to an act of Parliament. Other levies imposed by the
Kingdom shall be regulated by an act of Parliament.
Statutory regulations in force within the Kingdom shall not be applicable if such
application is in conflict with provisions of treaties that are binding on all persons
or of resolutions by international institutions (Article 94 of the Constitution).
Laws
The Dutch tax laws (in Dutch) are codified in several individual legal documents.
The main State taxes in the Netherlands are:
a) Personal income tax (Wet op de inkomstenbelasting 2001 – Wet IB);
b) Wage withholding tax (Wet op de loonbelasting 1964 – Wet LB);
c) Corporate income tax (Wet op de vennootschapsbelasting 1969 – Wet Vpb);
d) Dividend tax (Wet op de dividendbelasting 1965 – Wet Div.);
e) Inheritance and Gift tax (Successiewet 1956);
f) Value-added tax (Wet op de omzetbelasting 1968 – Wet OB); and
g) Customs (Douanewet).
On the municipality level a property tax (“onroerend zaak belasting”) is levied from
both owners and users of real estate. The general rules and administrative
procedures of taxation are laid down in a General Tax Code (“Algemene wet
inzake rijksbelastingen”). The collection and enforcement provisions can be found
in a seperate Tax Collection Act of 1990 (“Invorderingswet”).
A summary of the Dutch tax system can be found on http://www.dutchtax.net or
http://www.expatax.nl/index.html (in English).
Treaties
The Netherlands has tax treaties with more than 60 countries. Tax treaties are
negotiated by the Ministry of Finance (in cooperation with the Ministry of Foreign
Affairs). After signature by both parties, the treaty is tabled in Parliament and will
be accepted either by act of Parliament or automatically after elapse of a given
period of time. The treaty will enter into force by ratification. Tax treaties can only
limit the application of domestic legislation (Article 94 of the Constitution). In this
sense they prevail above domestic legislation.
Administrative material
Administrative instructions are usually given by implementation decrees
(“uitvoeringsbesluiten’) and/or regulations (“uitvoeringsregelingen”). These
decrees and regulations are published in the Official Gazette (“Staatsblad”) and
have legal binding force (secondary legislation).
A particular feature of the Dutch tax system is the possibility to apply for advance
pricing agreements (APAs) and advance tax agreements (ATAs). These agreements
are typically obtained for a period of 4 years (renewable) and cover issues like
inter-company services or hybrid loans.
For more information about the Dutch tax administration see their website (in
Dutch).
Case law
Taxpayers can lodge an appeal (summary of judicial system) at the administrative
level (“belastingdienst”), one of the five Courts of Appeal (“Gerechtshof”), and
ultimately at the Supreme Court (“Hoge Raad”). The Netherlands does not have a
Constitutional Court. The Senate (“Eerste Kamer”) functions as constitutional
‘watchdog’ during the legislative process.
Case law (Dutch search engine) in the Netherlands is important as many concepts
in tax law are not dealt with in much detail; e.g. the determination of taxable profit
is captured by the concept of “sound business practice”. This concept can only be
understand by case law. For an overview see: “The Relationship Between Fiscal
and Commercial Accounts in The Netherlands” by Peter Essers, in: International
Tax Topics, 1996, IBFD, Amsterdam (ISBN 90-70125-91-9).
Treatises, books and periodicals
There are only a few treatises in English about the Dutch tax system:
- “The Dutch Case - Description of the Dutch Tax and Customs Administration” by
Matthijs Alink and Victor van Kommer, © 1998, Gouda Quint, Deventer.
- “Taxation in the Netherlands” by Gerrit te Spenke, © 1995, Kluwer, Deventer.
The main periodical on Dutch taxation is “Weekblad voor Fiscaal Recht” (in Dutch).
For this and other publications in Dutch you can visit the website of Kluwer
Uitgeverij (requires subscription). For an overview of publications in English visit
the website of the Ministry of Finance.