The country is proactively working on tackling international tax avoidance. An international approach is inevitable here. First, the problems stem primarily from the mismatch between the tax systems of different countries. In addition, everyone must participate for the approach to be effective. The OECD is where an important part of the coordination takes place. The cabinet is confident that the final report of the Action Plan on Base Erosion and Profit Shifting(BEPS), expected this fall, will be an important step in tackling tax avoidance.
The Right Projects
Within the BEPS project, the country plays a pioneering role in a number of areas. For example, the government is at the forefront of promoting transparency and automatic exchange of information between tax authorities. This is an important weapon against tax avoidance. The commitment to transparency also fits well with the Dutch culture of openness. In addition, the country is proactively including anti-abuse provisions in tax treaties with developing countries. The country also provides technical support to tax authorities in developing countries. You can opt for track my tax return now.
The Right Solutions in Finance
In other areas it is important that the country takes a constructive position, but at the same time remains cautious. Misalignment of national systems has created opportunities for aggressive tax planning by multinationals in several ways. Measures are necessary, but they can also have major consequences for multinationals that do not engage in aggressive tax planning at all. For more on tax advisory services and their benefits, you can check out https://www.morrisonconsultants.com.sg/tax-advisory. For example, if the measures are not sufficiently effective at points where abuse is imminent and are not implemented in a sufficiently coordinated manner.
- This can unnecessarily damage the attractiveness of investing in the country. The country is cooperating constructively in various areas within the OECD on targeted solutions that tackle the problems, but do not unnecessarily harm the business climate and leave the level playing field intact as much as possible. Examples of areas in which the country is cooperating are combating treaty abuse and drawing up frameworks for patent boxes, such as the Dutch innovation box.
- In order to be able to continue to position itself strongly as a business location in the future, the country must ensure a sustainable competitive advantage in various areas. The attractiveness of a country as a business climate is always relative: measures taken by other countries to make themselves more attractive to foreign companies can harm the relative competitive position of the country.
Recently, for example, elements that made the Dutch tax system attractive, such as tax benefits for innovation, have also been introduced by other countries. It is important to monitor such developments and to be aware of the consequences for the Dutch tax business climate. In addition, it is important to continue to invest in areas that cannot easily be imitated by other countries, such as a well-educated population, a reliable, future-proof infrastructure and a strategic position within a well-functioning European market.
