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News 8th of September 2016 By Hannelore Durieu

Expansion of the reporting obligation of payments to tax havens

Companies must declare any direct or indirect payments it makes to persons located in 'tax havens' via a separate form in their corporate tax return.
  • +Payments to a permanent establishment or a bank account in a tax haven now qualify as well;
  • +A country only needs to appear on the OECD list at the time when payment is made and no longer during the entire taxable period, for the reporting requirement to apply;
  • +Countries with a 'normal' tax rate for domestic income but with an actual tax rate less than 15% for non-domestic income (= offshore jurisdictions such as Hong Kong and Singapore) now also count as tax havens.

In principle, the Programme Act entered into force from 14 July 2016. However, it is still possible that a Royal Decree may be issued to the effect that payments before this date also fall under the scheme.

If you are not sure whether certain payments that you make need to be declared, then please feel free to contact us for more information about the reporting obligation.

We base our advice on current legislation, interpretations and legal doctrine. This does not prevent the administration from being able to challenge it or to change existing interpretations.
Hannelore Durieu
Hannelore Durieu