The impact of the COVID-19 crisis: corporate tax residence and substance
On 3 April 2020, the OECD Secretariat issued its analysis on tax treaties and the impact of the COVID-19 crisis. The guidance deals with (a) concerns related to the corporate residence status (place of effective management); (b) concerns related to the creation of Permanent Establishments; (c) concerns related to cross-border workers, and (d) concerns related to the residence status of individuals. In this special edition we focus on the issue of corporate tax residence and substance.
The COVID-19 crisis may raise concerns about a potential change in the “place of effective management” of a company as a result of a relocation, or inability to travel, of chief executive officers or other senior executives. Such change may impact the company’s residence status under the relevant domestic laws and also affect the country where a company is regarded as a resident for tax treaty purposes. In addition, it may impact the application of anti-abuse rules and beneficial ownership. Below we deal with the OECD analysis as well as the perspective of our L&L home markets – Belgium, Luxembourg, Netherlands and Switzerland – on corporate tax residence and substance.
Overview of COVID-19 tax emergency measures
See here for an overview of the most important announced COVID-19 tax emergency measures adopted by the European Commission as well as within our home countries Luxembourg, Belgium, Switzerland and the Netherlands.
Anne MollemanAssociate Tax adviser
Anne Molleman, tax adviser, is a member of the International Tax Services practice group in our Amsterdam office. She focuses on Tax M&A and is a member of the Tax M&A team and the knowledge group Legal Mergers & Demergers team.T: +31 20 578 50 62 M: +31 657 14 97 47 E: firstname.lastname@example.org
Ruben van der WiltTax adviser Senior associate
Ruben van der Wilt, tax specialist, is a member of the Tax Knowledge Centre in our Amsterdam office. He focuses on Dutch and relevant international (corporate) tax developments.T: +31 20 578 53 87 M: +31 6 13 13 61 16 E: email@example.com
Fabian SutterAssociate Attorney at law, Swiss certified tax expert
Fabian Sutter, attorney at law and Swiss certified tax expert, is an associate in our Zurich office. He focusses on Swiss and international taxation, in particular corporate reorganizations and restructurings, M&A, financing and capital market transactions, transfer pricing, private equity, real estate transactions as well as tax litigation.T: +41 43 434 67 14 M: +41 79 398 76 39 E: firstname.lastname@example.org