As published on transferpricingnews.com, Wednesday 1 July, 2020.
The Dutch government has published the much-awaited guidance on the country’s DAC6 reporting requirement.
The guidance – published on June 30 – provides detailed explanations on cross-border arrangement, the definitions of intermediaries and relevant taxpayers, and the main benefit test, among others.
The guidance also provides information on the hallmarks stipulated in the legislation with illustrations.
The guidance notes that the term ‘participant’ has not been defined in the law and the meaning and application of the term will depend upon the facts and circumstances of the case.
With respect to the ‘main benefits test’, the guidance notes that the test will be met in broadly two situations. First, if an arrangement would not go ahead without the expected tax benefit and the existence of that tax benefit could be considered ‘decisive’ for the arrangement. And secondly, if an arrangement includes elements that have been added to obtain a tax benefit, provided that tax benefit is the main benefit – or one of the main benefits – that is to be expected from the arrangement.
The guidance also provides an overview of the role of the Mandatory Disclosure Rules (MDR) Team of the Dutch Tax and Customs Administration.