Tax legislation and regulations are changing rapidly and increasing measures are being put in place to combat tax avoidance and improve transparency. Your company must keep abreast of such developments and the impact they could have on your business. Whatever your tax issue, our market-leading Tax practice can provide pragmatic, tailored support, keeping in mind the desired degree of certainty of your tax position and your need to be transparent.
We offer integrated services, in collaboration with both our attorneys-at-law and civil-law notaries. All of this coupled with our independence from accountants and the international nature of our services, is what makes us unique.
Implementing Pillar One & Pillar Two
To adapt 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. Tax directors and their teams can already model the impact and assess opportunities for manageable restructurings to mitigate the increased complexity.
On 27 May 2022, the Task Force on the Digital Economy from the OECD published two public consultation documents on a Tax Certainty Framework and Tax Certainty for Issues Related to Amount A of Pillar
The anti-hybrid mismatch rules of the EU Anti-Tax Avoidance Directive (ATAD2) 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).
Following the second EU anti-tax avoidance directive, the further implementation of the reverse hybrid rule entering into force as of 2022.
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 European Commission recently issued a new proposal (ATAD 3). It is highly recommended that taxpayers assess the possible impact of the proposal and consider opportunities for strengthening their local footprint and/or restructuring.
During the 8th Annual International Tax Developments Seminar, several Loyens & Loeff tax experts as well as officials from the Dutch Tax Authorities updated the participants on the latest internationa