BERMUDA, CROWN DEPENDENCIES AND OTHERS ON DUTCH “LOW TAX JURISDICTIONS” LIST

Bernews on 28th December reported that Bermuda is one of 21 nations and territories included on a list of low-tax jurisdictions released by the Netherlands Government in what they said was an aim to “implement new measures to combat tax avoidance,” with the European nation listing jurisdictions that “either have no corporation tax or have a corporation tax rate that is lower than 9%”.  4 other British Overseas Territories and all 3 UK Crown Dependencies (Jersey, Guernsey, Isle of Man) are listed, along with the 5 jurisdictions currently blacklisted by the EU, plus the Bahamas, Bahrain, Belize, Kuwait, Qatar, Saudi Arabia, Vanuatu and UAE.  Additional measures to be implemented for those on the list are said to be –

  • additional measure on controlled foreign companies (CFC) which will come into effect on 1st January, aiming to prevent companies avoiding tax by moving mobile assets to low-tax jurisdictions;
  • a conditional withholding tax on interest and royalties from 1st January 2021 on companies registered in the jurisdictions which will pay 20.5% tax from 2021 on interest and royalties received from the Netherlands, to prevent funds being channelled to tax havens through the Netherlands; and
  • the Tax and Customs Administration will no longer issue rulings on transactions with companies headquartered in jurisdictions on the list.

A public consultation was held from 25th September to 22nd October, which resulted in no changes being made to the list.

http://bernews.com/2018/12/bermuda-on-dutch-low-tax-jurisdictions-list/

The official news release is at –

https://www.government.nl/latest/news/2018/12/28/netherlands-publishes-own-list-of-low-tax-jurisdictions-in-fight-against-tax-avoidance

The Dutch Government also issued a factsheet on its tax policy agenda on tackling tax avoidance and evasion –

http://cloudfront.bernews.com/wp-content/uploads/2018/12/Factsheet-tax-evasion-and-tax-avoidance.pdf

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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