Proposals to change interest deductibility may affect intercompany loans
July 22, 2009
A proposal from the Netherlands government makes it even more important for companies to have sufficient documentation in place to support the arm’s-length nature of inter-company financial transactions between Dutch and non-Dutch group companies.
The measure is part of a public consultation document aimed at companies that erode their Dutch taxable base by raising third-party debt and subsequently use the cash to acquire subsidiary companies or increase the equity in these subsidiaries.
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