New Dutch transfer pricing decree

A new Dutch transfer pricing decree was published on July 1, 2022. The new decree incorporates chapter 10 of the OECD transfer pricing guidelines into Dutch rules and addresses other updates included in the OECD transfer pricing guidelines, in particular those applicable to financial and other service entities in the Netherlands. Furthermore, clarification is provided on how to treat government subsidies and stimulus measures for transfer pricing purposes.

In part 1, we provide a summary overview of the relevant changes that particularly relate to financial transactions and financial service entities.

In part 2, we provide a summary overview of the Dutch tax authorities’ transfer pricing guidance and positions on issues excluding financial transactions and financial service entities (for which a separate alert is available). The rules are binding for the Dutch tax authorities and effective as of the month of July 2022, and may be applied retroactively. Tax inspectors are highly likely to audit taxpayers and apply the rules set forth in the new decree.