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Implementing Pillar One & Pillar Two

Implementing Pillar One & Pillar Two

Building upon work conducted for several years on how to adapt the international tax rules to an increasingly digitalised economy, the OECD/G20 Inclusive Framework proposes a two-pillar overhaul of the existing system as from 2023/2024. While the main policy features are agreed, detailed model rules and draft multilateral conventions are due to be released over 2022.

Tax directors and their teams can already model the impact, prepare for the additional tax compliance burden and assess opportunities for manageable restructurings to mitigate the increased complexity.

ATAD2

ATAD2

The anti-hybrid mismatch rules of the EU Anti-Tax Avoidance Directive (ATAD 2) aim to prevent situations of a double deduction and a deduction without a corresponding inclusion of the income at the level of the recipient resulting from a hybrid mismatch. All EU Member States have implemented ATAD2 in their domestic laws as from 1 January 2019 (for Belgium) or as from 1 January 2020 and 1 January 2022 (for a.o. the Netherlands and Luxembourg).

It is noted that EU Member states can introduce rules that go beyond the minimum standards of the ATAD2 directive. An example of this is the introduction of the ATAD2 documentation requirement in the Netherlands. Following the Dutch ATAD2 documentation requirement, all Dutch taxpayers should have documentation available in their administration that shows the (non-)applicability of the ATAD2 rules.

Substance & Tax Law

Substance & Tax Law

In recent years tax authorities have placed more emphasis on combatting the use of abusive and aggressive tax structures by companies operating across borders, to ensure fair taxation. The EU and OECD have provided tax authorities with various instruments such as the Anti-Tax Avoidance Directive (ATAD) and the Multilateral Instrument. The judgements handed down by the CJEU on the Danish cases have also set an important precedent.

However, since entities with no minimal substance and economic activity are supposedly still used for improper tax purposes, the European Commission recently issued a new proposal (ATAD 3). It is highly recommended that taxpayers already assess the possible impact of the proposal and consider opportunities for strengthening their local footprint and/or restructuring.

30-11-2023

In this update, our specialists inform you about relevant current tax developments and trends in the Netherlands, Belgium, Luxembourg and Switzerland that have an impact on MNEs.

Environmental, Social & Governance (ESG)

Environmental, Social & Governance (ESG)

Sustainability is becoming an increasingly important factor in the decisions of investors, companies, consumers, shareholders and policy and law makers. The broadly supported awareness of Environmental, Social and Governance (ESG) objectives is reflected in many international voluntary standards as well as in an increasing number of European regulations.

How we can help

Our in-depth knowledge, expertise and practical experience cover all of the various tax and legal areas relevant for your company. We can help with the whole range of tax and legal issues, from advice on mergers and acquisitions to transfer pricing, EU law and dealing with the tax authorities. Our highly experienced team also takes a broad view and looks beyond the specifics of your particular request to identify the best way of helping your business.

Our Tax practice is by far one of the largest among European law firms. Although the practice is comparable to that of any of the Big Four accounting firms in terms of numbers, you will find that our approach is very different. We focus on building strong relationships with our clients, providing personal service and acting as your trusted adviser.

We stand out from other law firms with our flat organisational structure, entrepreneurial mindset and pragmatic approach. We work in small teams and our partners provide plenty of hands on support. We also tailor our services to your precise needs, whether that’s a straightforward e-mail response or more considered advice.

Employment tax issues (wage withholding tax, social security contributions) can present complex challenges for (national and international) employers today.
Organisations operating in Europe must keep abreast of EU tax law developments. Our team monitors developments and keeps you informed.
Do you own a family business? Are you an entrepreneur? Or maybe a high net worth individual?
Effectively managing your indirect tax position and remaining competitive while avoiding risks.
How do you structure your investment vehicle and your acquisition when legislation is ever-changing, nationally and internationally?
Tax compliance is about more than submitting an accurate tax return on time.
Tax authorities are becoming more determined in their approach to tax disputes.
Loyens & Loeff helps simplify the process by offering you a one-stop shop for all your M&A needs, including those which relate to tax.
Today, transfer pricing is one of the main tax issues faced by groups. Whether your business is a high-growth start-up or an established multinational, you need to comply with transfer pricing rules.
Stay up to date on recent developments
Stay up to date on recent developments
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What others say

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“The people from Loyens & Loeff are very professional, very helpful, and very agile in their response time. They really know what clients expect, and they really fulfil expectations about their service.”
Legal 500 (2023)
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“Strength in the international tax area, multi-jurisdictional coverage in the Benelux region, close connections to tax agencies, and presence in New York city.”
Legal 500 (2023)
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“Ability to translate technical tax rules into actionable business decisions, ability to collaborate across different firms, capacity to creatively brainstorm solutions and familiarity with working with multinational, publicly traded corporate clients.”
Legal 500 (2023)
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"The team has broad experience across the whole range of tax categories, structuring options and practical tax mitigants, making them our number one go to counsel for all of our fund structuring, financing and M&A matters."
Legal 500 (2023)
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"Deep knowledge of local and international tax environment. Outstanding ability to focus on client’s needs and to propose solutions, always tailored on specific client’s requests"
Legal 500 (2023)
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"Loyens & Loeff provides a very high quality of service with high responsiveness."
Chambers & Partners Europe (2023)
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"They are fantastic at handling complex issues and the team has strong depth and breadth of expertise."
Chambers & Partners Europe (2023)
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"Loyens is very strong in Dutch and Luxembourg tax. We have consulted them on a number of proposed restructurings involving both countries, and their advice is timely, well supported, and client friendly. We have no issues introducing them to our clients in this regard."
Legal 500 (2022)
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"I choose Loyens for particularly complex tax work. The reasons I choose them include: deep knowledge of Dutch tax laws, anticipation, very high standards, truly understanding of clients needs, responsiveness, large teams, involved partners."
Legal 500 (2022)
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"The firm has one of the best tax practices in the Netherlands. They are very professional, responsive and friendly to clients."
Legal 500 (2022)
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"Our main individual contact with the firm is Jeroen Janssen. He is extremely professional and focused on clients."
Legal 500 (2022)
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"The Netherlands’ unquestionably top tax advisory firm."
Legal 500 (2022)
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"Very dedicated professionals and fully available. Excellent follow up on complex subjects."
Legal 500 (2022)
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"A client appreciates that "they are very responsive when we have questions and proactive when there are local law issues that we might not have considered," and adds: "Their advice is also business-focused."
Chambers & Partners Europe (2022)
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"A client enthuses that the lawyers are "accurate, timely and very pleasant to work with."
Chambers & Partners Europe (2022)
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"Deep knowledge of Dutch tax laws, anticipation, very high standards, true understanding of clients' needs and responsiveness."
Chambers & Partners Europe (2022)
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"Loyens & Loeff is really a top firm in both Belgium and the Netherlands for tax."
Chambers & Partners Europe (2022)
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Clients underline the firm's commercial acumen, one saying that "across the board they're extremely service-oriented," before adding: "They are able to do things very quickly." Another simply states: "Their services are excellent."
Chambers Europe (2021)
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Market-leading practice offering a full range of tax services through a large team. Focuses particularly on areas such as corporate structuring and tax strategies related to M&A, including IPOs and public M&A. Also experienced in the handling of direct and indirect tax as well as transfer pricing matters and is highlighted by clients for its impressive coverage of tax issues related to investment funds, an area in which the firm remains highly active. Has a broad coverage of experts across the Benelux region as well as an increasing presence in other Western European jurisdictions. One market source enthuses that the firm "is by far the best," particularly noting that "it has the deepest bench and depth of knowledge."
Chambers Europe (2020)
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World Tax: We again received tier-1 rankings in The Netherlands, Belgium and Luxembourg. Our Swiss office was ranked tier-3. In the Netherlands we also received tier-1 rankings General corporate tax, Transactional tax, Tax controversy and Indirect tax. In addition, several of our female tax advisers are again ranked in the 'Women in Tax Leaders Guide 2021' World Transfer Pricing: In both the Netherlands and Luxembourg we received tier 1 rankings. In Belgium we received tier-2 ranking and Switzerland received tier-3 ranking."
International Tax Review (2020)
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