Filing deadlines Dutch Justice Department 2007!!
 Under Dutch law a declaration of no objection has to be requested with the Justice Department in case of incorporation of legal entities subject to such previous approval. Also if an amendment of the articles of association of such entities has to take place a declaration of no objection is required. The Dutch Justice Department announced that, should the declaration be issued during 2007 and thus the incorporation or amendment, they will only accept such requests if they are being filed no later than 30 November 2007. Please consider this in the planning strategies for your clients! We would be more than happy to assist you in this urgent matter. In this respect please note that we have off-the shelf entities available.
The Netherlands continues to reduce corporate taxes
Effective 1 January 2008 the corporate income tax will be even more reduced and also the brackets are extended. The respective tax level thus applies in the following manner:
Taxable amount
EUR 0 – EUR 40,000
EUR 40,001 – EUR 200,000
> EUR 200,000
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tax percentage
20%
23%
25,5%
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You will find that the present rate of 23.5% will be reduced to 23%.
Patent Box extended
As you may know qualifying patents are taxed at 10% as from 1 January 2007 after the Netherlands had received approval by the European Code of Conduct Group. The Dutch Finance Minister has decided that, effective 2008, also the tangible fixed assets resulting from research and development approved projects by Dutch companies will be under the scope of the patent box and therefore also taxed at 10%. This should accommodate the small and mid sized Dutch development companies and is aiming to stimulate the development of a knowledge driven Dutch economy.
Proposal to introduce a one tier board
On 13 November the Dutch Justice Minister has announced to file a legislative proposal to the Dutch Parliament soon introducing the possibility to combine the board of directors and the board of supervisory directors in one corporate body. By doing so Dutch companies will be able to have a one tier board similar to the UK. In said proposal there will also be more details about the liabilities of the executive and non-executive directors and their representation powers. Said introduction also facilitates Anglo-Saxon companies in having their head office in the Netherlands whilst they can maintain their desired control structure. Through our news flash we will keep you updated with any developments in this respect.
Luxembourg – no abolition of capital contribution tax
The Luxembourg government has decided to postpone the abolition of their capital contribution tax (presently 1%) most likely to 2011. In stead it has been decided to decrease the tax level to 0.5% effective 1 January 2008. Please note that the Netherlands has already abolished their capital contribution tax effective 1 January 2006.
For a general overview of our services and/or more detailed information, please check our website www.ftc.nl or contact us at:
FTC Trust BV
World Trade Center Schiphol Airport
Tower B, 5th Floor
Schiphol Boulevard 231
1118 BH Amsterdam Schiphol
Tel: +31 20 405 4747
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