On 23 December 2015 new transfer pricing documentation requirements based on the OECD BEPS standards were enacted as Articles 29b-29b of the Dutch Corporate Income Tax Act. Following this change in law, the Dutch Ministry of Finance on 30 December 2015 issued Decision DB2015/462M on the new transfer pricing documentation requirements.
In general, the Dutch legislation and documentation requirements are in line with the OECD guidance in Action 13 on Transfer Pricing Documentation and Country-by-Country Reporting.
The law now explicitly states that transfer pricing documentation may be prepared in Dutch or in English, and Decision DB2015/462M details in both Dutch and English the information required for the master file, the entity file and the Country-by-Country Report.
As from 1 January 2016 Dutch resident entities that are part of a group with consolidated turnover of EUR 50 million or more must prepare and keep in their administration a master file and an entity file. Noteworthy is that such transfer pricing documentation must be available before the deadline for filing the corporate income tax return.
Some additional points regarding the Country-by-Country Report are:
Because the new Dutch transfer pricing documentation requirements are in line with the OECD guidance in Action 13, compliance with the documentation requirements lends itself to be streamlined, using the tax technology solutions already available in the market such as TP Controller from Otico Software. A tax technology solution that links compliance to a single repository for storage, access and sharing of a corporate’s global TP data will furthermore allow a corporate to respond timely to requests for local documentation on a worldwide basis and to stay in control of its transfer pricing affairs.