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Our tax experts, Michiel Schul and Laurens Hoek, contributed an insightful article, "Impact of the Dutch 2025 Tax Plans on U.S. Parties," to the latest edition of Tax Notes. In this article, Michiel and Laurens break down how the 2025 Dutch tax proposals could benefit U.S. multinationals and asset managers with Dutch entities. Key topics include: ➡️ Changes to the Dutch earnings stripping rules. ➡️ Amendments to the ‘subject-to-tax rules’ in interest deduction limitation rule (article 10a) and the participation exemption to recognize the Pillar Two (P2) levy in a particular jurisdiction as ‘tax paid’. ➡️ Incorporation of new P2 OECD Administrative Guidance under P2 in Dutch tax law. This includes changes on the P2 treatment of new categories of tax credits, the substance-based income exclusion and hybrid arbitrage arrangements entered into after December 15, 2022. ➡️ Positive changes to the conditional withholding tax rules by the introduction of a narrower group concept (the so-called ‘qualifying unit’). This is good news for US asset managers with investment platforms in the Netherlands. ➡️ Changes to the Dutch entity classification rules. These rules are generally positive news as they are expected to reduce the number of hybrid mismatches in an international context. The new entity classification rules were already adopted last year but will become effective on January 1, 2025. Want to check how these developments impact your structure? Read our article here: https://lawand.tax/4938izh #lawandtax #InternationalTax #USNetherlands #2025Dutchtaxplans

Simplify Your International Tax Obligations! 💸 🌎 Unlock new opportunities for your business with the Chile-Australia Double Tax Treaty. Our latest blog post breaks down the key provisions of this crucial agreement, offering practical insights to optimize your tax strategy and promote cross-border economic cooperation. If your operations span Chile and Australia, a deep understanding of this treaty is essential for navigating the complexities of international taxation. Ready to maximise your tax efficiency? Connect with our experienced team today to discuss your strategy. Post by HGG's Tax Associate Camila Weinstein Niedmann https://lnkd.in/ga-DFN96

This case highlights the importance of understanding tax treaties and international obligations when it comes to foreign tax credits. In the Christensen case, a U.S. citizens residing in France a foreign tax credit against the net investment income tax, based on the 1994 U.S.–France Tax Treaty. The issue in the case arose because Sec. 27 and Sec. 901(a) state that foreign tax credits can only be used against taxes imposed by Chapter 1 of the Code. The NIT 3.8% net investment income tax under Sec. 1411 is imposed by Chapter 2A of the Code, and therefore a taxpayer would not be allowed to offset the net investment income tax with a foreign tax credit under these provisions. The Christensens challenged this result. They were U.S. citizens residing in France who sought a refund for net investment. income taxes paid on foreign-source passive income. Paragraph 2(a) of Article 24 of the 1994 Treaty states that the allowance of foreign tax credits is subject to the provisions and limitations of U. S. law. As explained above, Secs. 27 and 901(a) do not allow this credit against net investment income tax. But Paragraph 2(b) of Article 24 of the 1994 Treaty describes how the tax credit should be applied between the United States and France, known as the “three-bite” rule, and does not contain the same limitations as Paragraph 2(a). To address the conflict between the treaty and U.S. statutory provisions, the court relied on relevant precedential cases, which instruct courts to interpret the Code in a way that avoids conflict with international obligations. Sec. 6511(d)(3)(A) recognizes a distinction between foreign tax credits under Sec. 901(a) and foreign tax credits under any treaty to which the United States is a party. This distinction indicates that a foreign tax credit may be allowed by treaty provisions that is not also allowed by Sec. 901(a). Relying on this interpretation, the court allowed the plaintiffs a foreign tax credit against net investment income tax based on Paragraph 2(b) of Article 24 of the 1994 U.S.–France Tax Treaty.

Partner Vanessa Piedrahita's latest article discusses the key considerations of the US-Chile Tax Treaty. It provides valuable insights into international tax matters, particularly the implications for Chilean tax regulations. #internationaltax #ChileTax #TaxTreaty https://lnkd.in/eACE4-zC

Wealth and corporate taxes remain a sticking point between countries at the U.N. negotiating the roadmap for a framework convention on tax. The first round of talks to establish the parameters of the convention concluded last month. Read the story:

Internationale Fiscale Actualiteit n° 2024/06 is out! And in this extra large edition we have no less than 4 very interesting articles. Wouter Strijckers and Chiara Storms (Alongsight) give us a state of play on Pillar One Amount B (nowadays called “simplified & streamlined approach”) Filip Debelva and Glynn C. Cooreman (KULeuven) analyse the Ghent court of appeal’s decision of 5 November 2024 on the applicability of the Belgian-Luxemburg double tax treaty on the annual tax on collective investment institutions (better known as “abonnementstaks/taxe d’abonnement”). Would this decision stand the test by the Supreme Court? Tom Hamen and Katerina Dimitrova (Loyens & Loeff Luxemburg) give us an overview of the different proposals with important impact on the Luxemburg tax law (ranging from changes in the minimum net wealth tax regime, the participation exemption regime, tax reduction for companies and individuals, …) And last but not least we also are looking to our neighbours in the north: Mark Foesenek and Cora Oostvogels (Van Oers) describe us the Box 3 – story. Box 3 was introduced in 2001 and very harshly criticized by the Hoge Raad in 2017. The Dutch government has been trying to adapt the tax regime so that it is acceptable by its highest court. And it is clear … they are not their yet!

📢Consider this as your friendly reminder: The deadline for filing your taxes in the Netherlands is approaching fast! Don't forget to complete your tax returns 𝐛𝐞𝐟𝐨𝐫𝐞 𝐌𝐚𝐲 𝟏𝐬𝐭 to avoid any complications. 🌐Depending on your circumstances, you may need to file an income tax return with the Dutch tax authorities, known as the Belastingdienst. If you've recently arrived or left the Netherlands, you'll likely need to complete the Migration income tax return, also known as the M-form. More information: https://lnkd.in/eg_yVbbA 💼 Filing your taxes in the Netherlands can be complex, especially if navigating the 80+ page Dutch M-form on your own. While you have the option to file independently, many internationals find it beneficial to seek assistance from a Dutch tax advisor like Tax is exciting BV - OrangeTax 🏠 Good to know! Even if you're no longer a resident taxpayer in the Netherlands, you may still have tax obligations related to property ownership. Understanding your tax residency status and unique situation is crucial for proper filing and compliance. You can find more information about the Dutch income tax here: https://lnkd.in/eNu7sKua ⚡ While taxes may not be the most exciting topic, it is essential for your financial well-being. If you have any questions about doing your taxes in the Netherlands or other questions about moving to the Netherlands, we are here to help and guide you every step of the way. Contact us at [email protected] or visit our website: https://lnkd.in/ebmxnxm. #RotterdamExpatCentre #TaxDeadline #Rotterdam #IamExpat #Business   📷 Iris van den Broek

🌍 Simplifying Italian Wealth Taxes: What Foreign Investors Need to Know 🇮🇹 Understanding Italy’s wealth taxes, like IVIE and IVAFE, can be daunting - especially if you’re new to the Italian tax system. But fear not! We’ve broken down these complex topics in our latest blog post to make them accessible for everyone, whether you’re an investor or just curious. What’s in it for you? 🖋️ A straightforward explanation of what IVIE and IVAFE are, and why they matter if you own or plan to invest in property abroad 🖋️ Key differences between these taxes and how they are calculated 🖋️ Real-world examples to help you grasp how these taxes might impact your investments 👉 Ready to dive in? Read the full article here https://buff.ly/4ghwnFC and get the insights you need. Don’t forget to share this post with your network to help others navigate these important tax rules 🤝 #ACLegal #WealthTax #IVIE #IVAFE #ItalianTaxLaw #EstatePlanning #InvestInItaly

🗓️ On November 29th, Erasmus University Rotterdam is hosting a conference to dive into the complexities of corporate tax avoidance and explore whether the Netherlands truly is a tax paradise 🇳🇱 💸 🎙️ If you happen to be around, don’t miss Sarah Godar’s lecture: Spotting the Netherlands in Global Tax Evasion: Insights from the Global #TaxEvasionReport. 📋 Find more details and register here: https://lnkd.in/ebEh_hG4

In August 1920, the Dutch government presented a proposal for a tax treaty to their southern neighbors. This proposal was simple, principle based and similar to other early tax treaties being negotiated by European nations at the time. The initiative for the first comprehensive Double Taxation Agreement (DTA) between the countries stemmed from a Belgian appeal to resolve the issue of double taxation resulting from war profits taxes, mobilization tax, and other extraordinary taxes. More than hundred years later extraordinary taxes are on the rise again. What is different is that a comprehensive treaty network is in place, with treaty provisions that have grown more complex over time. Do they sufficiently address newly emerging tax issues? The Netherlands and Belgium are currently ratifying a revised tax treaty that will be the subject of a bilateral IFA Conference on 6 September 2024. Programme, speakers and registration are available at https://lnkd.in/gqxJPQVt. Join experts from government, practice, business and academia to explore the new convention between Belgium and the Netherlands and other international tax developments in the Low Countries. Registration is now open at a reduced rate for all IFA members! #IFAT #tax #internationaltax #taxtreaties #belastingverdrag #NederlandBelgië International Fiscal Association - Young IFA Network YIN - Young IFA Network (YIN Netherlands) - Women of IFA Network (WIN) - Bernard Peeters - IFA BELGIUM - Rhys Bane - Mahi Anastasiou - Linda Brosens - Wim Panis - Laurence Pinte - Frank Pötgens - Margriet Lukkien - Gijs Fibbe - Caroline Docclo - Rijkele Betten - Tim Wustenberghs