On 13 June 2014 five new updated Decrees concerning advance pricing agreements (“APA”), advance tax rulings (“ATR”) and substance requirements came into effect. According to the new amendments the Dutch tax and customs administration shall spontaneously exchange with foreign tax authorities information about APAs for service entities in certain instances of “minimum substance.” APAs may now apply for a longer term, which is to be determined on a case-by-case basis.
The substance requirements also apply to financial service companies without an APA that want to apply the Dutch treaty network or the EU Interest and Royalty Directive. If such a financial service company does not comply with the minimum substance requirements the tax authorities intend to spontaneously exchange information with the relevant foreign tax authorities.