• Service: Tax, Global Transfer Pricing Services
  • Type: Regulatory update
  • Date: 11/29/2013

Netherlands - New transfer pricing decree unifies rules 

November 29:  The Dutch Deputy Minister of Finance this week issued a new decree that generally unifies and clarifies prior transfer pricing guidance, and withdraws and cancels prior decrees from 2001 and 2004. The new decree is effective 27 November 2013.

The arm’s length principle remains the starting point for transfer pricing. The decree addresses the following areas:

  • Intra-group services
  • Financing transactions including non-business motivated loan
  • Non-business motivated profit shifting (in particular concerning intangible fixed assets, central purchasing within the group, and internal insurance/reinsurance activities)
  • Guarantees

The new decree is intended to clarify the policy on transfer pricing. Specifically, there must be transfer pricing documentation that explains the commercial rationale behind existing and proposed structures and group transactions and that substantiates functionality. This also applies to financial transactions for which a “simple” benchmark is no longer appropriate. In this respect, the decree is in line with international developments.

Read a November 2013 report prepared by the KPMG member firm in the Netherlands: Deputy Minister of Finance releases new transfer pricing decree

Contact a tax professional with KPMG's Global Transfer Pricing Services.

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