Germany, Netherlands To Exchange Data On Tax Rulings
Germany and the Netherlands have signed a new agreement that provides for the “spontaneous” exchange of information on advance pricing agreements and advance tax rulings.
The agreement was signed in Brussels on July 14, 2015. Under the new agreement, both countries have committed to the mutual exchange of information on unilateral APAs if such agreements have an impact on taxation in the other state.
Similarly, both countries will exchange information on APAs that are concluded with non-EU countries in cases where either Germany or the Netherlands is not a party to the agreement in question but will be affected in terms of taxation.
The agreement will also cover advance tax rulings concerning preferential tax regimes for intellectual property that are issued in the Netherlands.
The German Ministry of Finance said of the deal: “The agreement is an important step towards achieving greater transparency on tax rulings. In the aftermath of the ‘Luxembourg Leaks,’ which were published in late 2014, Finance Minister Schäuble, together with other EU finance ministers, called on the European Commission to take action in this area.”
“In March 2015, the Commission presented a proposal for a directive on the mandatory automatic exchange of information on tax rulings among member states. Deliberations on this proposal are in full swing. Germany is pushing for the deliberations to be concluded in autumn of this year. In this way, states whose taxation activities are affected by these kinds of tax rulings will be able to obtain information on those rulings in good time, thereby enabling them to ensure proper taxation under their national laws.”
The agreement applies to information relating to the 2015 calendar year and subsequent years. In addition, the two countries may also agree to exchange information relating to earlier years.
