CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Dutch DTA With Japan Questioned By EU Commission

Dutch DTA With Japan Questioned By EU Commission

by Lorys Charalambous, Tax-News.com, Cyprus

23 November 2015


The European Commission has requested that the Netherlands amend the limitation on benefits clause in its double tax treaty with Japan.

The Commission said that, on the basis of previous cases such as Gottardo (C-55/00) and Open Skies (C-466/98), a member state concluding a treaty with a third country cannot agree better treatment for companies held by shareholders resident in its own territory, than for comparable companies held by shareholders who are resident elsewhere in the European Union or European Economic Area (EU/EEA).

Similarly, the Commission said a member state "cannot agree better conditions for companies traded on its own stock exchange than for companies traded on stock exchanges elsewhere in the EU/EEA. However, under the current terms of the LOB clause, some entities are excluded from the benefits of the tax treaty. This means that they suffer higher withholding taxes on dividends, interest, and royalties received from Japan than similar companies with Dutch shareholders or whose shares are listed and traded on 'recognized stock exchanges,' which include certain EU and even third-country stock exchanges."

The Commission has requested that the Netherlands respond to its concerns within two months. Otherwise the case may be referred to the European Court of Justice.

TAGS: tax | investment | business | European Commission | double tax agreement (DTA) | Netherlands | tax avoidance | interest | royalties | law | enforcement | ministry of finance | tax authority | agreements | multinationals | legislation | stock exchanges | tax planning | transfer pricing | withholding tax | dividends | tax reform | regulation | trade | European Union (EU) | Japan | Europe

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »