In the Netherlands new transfer pricing documentation rules are introduced. They will have an impact on companies with a global consolidated turnover of € 50 million

1. New Transfer Pricing Documentation Requirements
Country by Country reporting
Netherlands
member of

2. • New Transfer Pricing Documentation requirements in the Netherlands as from
2016
• General Background (Base Erosion and Profit Shifting)
• Main changes
• Specific requirements
• Who is responsible for filing
• Timing and penalties
• How you could resolve this requirement efficiently – our approach
• Our Transfer Pricing Services
• Our Firm & International Network
Agenda

3. Documentation Requirements
2016 Netherlands

4. • The Dutch government has introduced new and more extensive Dutch transfer
pricing documentation requirements as per January 1, 2016
• The new legislation will be relevant in the following situations:
1. The Dutch entity or branch is part of a multinational group with a consolidated
annual turnover of € 50 million or more (Medium Sized Groups – MSG)
Also small Dutch operations will be subject to this new compliance requirements
if they are part of a group with a consolidated turnover of at least € 50 million
2. Dutch entities/branches heading an international group or part of multinational
group with a consolidated turnover of at least € 750 million (Large Sized Groups
– LSG)
These larger groups will be subject to more detailed reporting requirements
General Background

5. The new legislation introduces significant changes to transfer pricing documentation
requirements, since:
1. It now provides detailed and very specific (annual) documentation requirements.
In the past it was more an open norm and left much more flexibility to the
judgement of taxpayers.
2. It introduces a specific penalty when not complying. In the past companies had
some time to prepare missing documentation after a request/audit from the tax
authorities
3. Finally it provides for detailed filing deadlines and procedures
Main Changes

6. Medium Sized Groups are required to prepare and file:
• A Master File – including inter alia an overview of the entire multinational group,
the applied world wide transfer pricing policy and worldwide allocation of
income and economic activities.
• A Local File – including the economic analysis (inter alia functional analysis and
benchmarking) regarding the related party transactions of the Dutch local
company. This also requires the review of the financial activities of the group,
intangible property and group strategy.
• The specific and detailed requirements of the Local File and Master File are
included in a Decree of the Dutch State Secretary of Finance (December 30, 2015)
Requirements MSG (50M+)

7. In addition to the requirements for MSGs, Large Sized Groups are also
required to prepare:
• A Country by Country Report – this report includes for each country where the
multinational group is operating details with respect to inter alia:
– Volume of related and unrelated party transactions
– Result before tax
– Tax paid
– Number of employees
– Accumulated earnings
– Main business activities per entity
Requirements LSG (750M+)

8. Who files the country file:
• In principle the ultimate parent company that is required to consolidate the
results of the subsidiaries
• If the Dutch entity is not the (ultimate) parent company, it can still be held
responsible to prepare and file the country file if:
• It has been appointed by the multinational group to do so; or
• The multinational group or the foreign tax authorities are not required or able
to share the country file with the Dutch authorities
Requirements LSG (750M+)

9. Requirements LSG (750M+)
Ultimate Foreign parent
company
Country A
Dutch intermediate
(holding) company
Subsidiaries
In country A:
 No similar country by country obligations; or
 There is no exchange of information agreement;
or
 Negligence of authorities to share information
with the Netherlands
Dutch intermediate company may be
required to prepare and report
country file

10. When:
• The master file and local file (LSG 50M+) should be prepared for each year and
should be available not later than the filing deadline of the CIT return
• The country report must be submitted within 12 months after the end of the
financial year
Penalties
• Not meeting the requirements can result in penalties or even imprisonment if
the latter was intended by the taxpayer
When and penalties

11. How to resolve efficiently – our approach
Our recommendations Explanation
Prepare an overall transfer
pricing health check of your
company and prioritize issues
- What documentation is currently
already available in your company
and what is locally required?
- Is it up to date and also provides
sufficient substantiation for red
flags (swings in profits, losses
etc.)?
- Does it meet new (local)TP
requirements?
Many countries are introducing new
and more stringent transfer pricing
rules.
An overall health check makes it
possible to start making a priority list
of actions.This limits any duplication
of work and avoids a myriad of local
approaches that is difficult to
administer and to process in your
administrative systems

12. How to resolve efficiently – our approach
Our recommendations Explanation
Start in time, since this gives you
the opportunity to recognize
transfer pricing vulnerabilities
and inconsistencies and
opportunities upfront
It is key that the transfer pricing
documentation is consistent with the
actual financial results.Therefore it is
more difficult and often challenging
to prepare documentation after the
close of the financial year.That may
also have a negative impact onVAT,
customs, financial reporting etc.
Therefore, it provides you more time
to resolve possibleTP issues.This is
ultimately better in terms of use of
resources and costs.

13. Our Transfer Pricing Services

14. • Transfer Pricing support for reorganisations (valuation, defence file)
• Aligning strategy with worldwide Transfer Pricing framework
• Supply chain optimisation (commissionaire, limited risk, contract R&D)
• Implementation and documentation (CbC, Master File, Country File)
• Valuation and credit rating
• Pricing financial instruments (guarantees, back to back, loans)
• Litigation support
Services provided

15. Unique Selling Points
Problem solving and opportunity
identification
• Clear step plan and division of tasks
• Strong focus on implementation
• Practical approach
• Project management is core competence
• Quick delivery
Competitive pricing
• Standardisation of processes
• Uniform delivery and working methods
• Transparency in fees
• Proven cooperation with other countries
Quality
• Involved in several OECDTP consultation
procedures
• Regular key speaker inTransfer Pricing
seminars and conferences
• Former headTransfer Pricing RSM
International (5th global tax network)
• Practical experienceTransfer Pricing
approach in other countries

16. Transfer Pricing Process
analysis
• Investigate the business set up/value chain and corresponding
tax, economic and legal framework which is the core of the
functional analysis
design
• Use a balanced approach and design a transfer pricing solution
that is understandable and meets the requirements of the
different stakeholders (inter aliaVAT, customs, IT systems in
place)
implement
• Prepare a step plan or project management plan and provide for
proper education and involvement of the stakeholders.Translate
the transfer pricing framework to the organisational
environment

17. Track record
Preparing a strategicTP framework and document it in a Pan European Master file for the involved
European operating entities of a multinational.
Converting a buy-sell model into a license driven structure, in which the owner of the intellectual
property is no longer involved in the production and sales function,but purely focuses on making the
intellectual property available to group companies.
Assisting with the termination of a Dutch contract R&D structure, and subsequently transferring this to
the another country, which included the determination of the transfer price of the IP
Supply Chain management – converting a full risk distributor into a limited risk distributor.
Transferring of manufacturing activities, which included determining of a possible termination fee and
transfer price of the intellectual property (know how etc).
Business Reorganisations – converting business model of multinational group into a single business entity

18. Our Firm

19. • Fisconti Tax Consulting is specialised in providing tax services to businesses and
has offices in The Hague and Amsterdam
• Our clients are Dutch and multinational companies ranging from start-up
businesses to long-time established and world’s leading businesses
• Fisconti’s aim is to fully understand your business and to be considered a logical
and vital extension of your organization.
• Experience is absolutely essential for providing transfer pricing, so we have
gained many years workings experience at the big four
• Transfer pricing services of Fisconti are coordinated by a partner who has
multiple years of experience in transfer pricing and who was head of transfer
pricing group of RSM International.
• We are part of a network of independent international tax advisors, the
Corporate Tax Alliance. We are now covering more than 30 countries in the
world.
About us

20. The Corporate Tax Alliance - Network

21. We have the following core values that determine how we work and service
our customers:
• You cannot render proper transfer pricing advice without knowing the business
and its industry
• The transfer pricing framework and strategy should support the business and
not the other way around.
• We strive to simplify the transfer pricing framework to make it practically
useable and controllable for our customers without oversimplifying things
• We aim to be pro-active and responsive and identify transfer pricing
opportunities
• Be independent and highly experienced in order to provide a one stop shop in tax
and transfer pricing solutions
Core values

22. Our core values result in the following cornerstones we believe are important when
servicing our customers:
• Our advices should be practical and understandable and clearly stipulating the
‘way forward’
• Clients will have one highly experienced point of contact
• We take an integrated approach in tax matters, since business and the different
(international) taxes ‘interact’ with each other
• Advice should be embedded in the context of the business
• To identify opportunities and detect tax risks in an early stadium, we organize
client service meetings on a regular basis
• Our aim is to provide a reply within 24 hours
• We believe it is important to be clear on the deliverables, pricing and planning
• We have an industry focus and keep close contact with all the relevant
institutions (tax authorities, auditors, legal advisors etc.)
Client Service Approach

23.  Guido is tax partner working with Fisconti Tax Consulting and
has more than 15 years experience in Transfer Pricing and
International Taxation issues
 From this, he has extensive experience with, amongst others:
 Advise and assistance with the design and implementation
of tax efficient structures via the Netherlands (corporate
tax, VAT and wage tax)
 Obtain advice certainty and rulings from tax authorities
 Advising, implementation and documentation with respect
to cross border and (Pan) European transfer pricing
projects on behalf of clients in different industries
 Assist clients with the implementation of (cross border)
restructurings
 Assist clients with global mobility issues (wage tax, social
security)
 Guido is a full member of the International Fiscal Association and
holds various master degrees (Tax Law, Tax Economics, Finance
and a post Master in International Taxation and European Tax
Law)
 Guido is former European RSM Head of Transfer Pricing and
contributing member of the European Tax Structuring and
European Tax Group. Guido started his career within PWC.
Resume Guido van Asperen
Email: guido.van. asperen@fisconti.nl
Cell Phone: +31 6 1504 1623

24. President Kennedylaan 19
2517 JKThe Hague
P.O. Box 17111
2502 CC The Hague
The Netherlands
+ 31 6 1504 1623
+31 70 365 66 17
guido.van.asperen@fisconti.nl
www.fisconti.nl
member of