July 20, 2023

We have informed you earlier this year that Temporary Act on Transparency Turbo Liquidation (Tijdelijke wet transparantie turboliquidatie), which makes turbo liquidation more difficult and transparent, will most likely be approved by the Dutch government: https://cismanagement.nl/news/dutch-house-of-representatives-approves-temporary-law-making-turbo-liquidation-more-transparent/. Please visit this page for more information on what the new law entails.

The Dutch government recently gave an update on this legislative proposal by announcing that the Temporary Act will enter into force on 15 November 2023. Until this date, Dutch entities without assets may be liquidated under the current rules.

This means that, considering the temporary nature of the new law, these stricter requirements will remain in force for two years, until 15 November 2025. If deemed necessary by the Minister of Legal Protection, this period can be extended by another two years, or in case a proposal for a permanent legislation has been made, the validity will be extended until that permanent legislation is adopted.

Please feel free to contact CIS Management for further information.