May 5, 2023
Netherlands updates guidance on mandatory disclosure regime
The Dutch Government issued a decree on 28 April 2023 containing updated tax authority guidance on the application of Dutch legislation implementing European Union (EU) Directive 2018/822 on the mandatory disclosure and exchange of cross-border tax arrangements (referred to as DAC6 or the Directive).1
The newly issued, updated decree provides further clarity on the interpretation of the Dutch Mandatory Disclosure Rules (MDR) legislation and how the Dutch Government wants the reporting process to operate. The decree reconfirms that the Dutch MDR legislation is broadly aligned to the requirements of the Directive.2
Key highlights of the updated Dutch decree are summarized below.
Determining whether there is a reportable cross-border arrangement raises complex technical and procedural issues for both taxpayers and intermediaries. Taxpayers and intermediaries who have operations in the Netherlands should review the MDR obligations on a case-by-case basis. EY can assist in determining whether the updated guidance from the Dutch Government may impact an MDR position and result in possible reporting obligations.
For additional information with respect to this Alert, please contact the following:
Ernst & Young Belastingadviseurs LLP, Rotterdam
Ernst & Young Belastingadviseurs LLP, Amsterdam
Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor
1 For background on MDR, see EY Global Tax Alert, EU publishes Directive on new mandatory transparency rules for intermediaries and taxpayers, dated 5 June 2018.
2 See EY Global Tax Alert Netherlands passes Act to implement Mandatory Disclosure Rules, dated 7 January 2020.