Intra-group financial services (i.e. back-to-back and/or licensing activities) are subject to the Financial Services Regulation (from 2001 and updated in 2004). Undertakings considered to be financial services undertakings under these decisions are defined as undertakings whose activity represents at least 70% of the intra-group financing and/or licensing activities (excluding shareholdings). Note that the prior guarantee can only be obtained in combination with a prior guarantee on the appropriate transfer pricing method or third party remuneration. An APA provides advance guarantees on subcontracting prices for cross-border transactions, including financing or licensing activities and the provision of services, between affiliated enterprises and between certain parts of the same legal entity (headquarters and establishment). An advance pricing agreement with the Dutch tax authorities gives you prior clarification on reciprocal transfer pricing for your companies and prevents any further discussions with the Dutch tax authorities. An APA is not reserved for large listed companies. It is also an interesting option for a family business or an SME that operates internationally. The advantage of entering into a pre-sale agreement is the certainty that the tax authorities accept the taxable person`s transfer pricing system. It is also to be expected that the tax authorities will defend the taxable person`s case in a future mutual agreement procedure. International companies usually talk about judgments when we create security in advance.
The interpretation of tax laws and regulations is always the same for taxpayers. It doesn`t matter if you make prior agreements in an APA or atR. The importance of a judgment is a certainty in advance. Whether we are of opinion in advance or after, the tax and customs administration always acts in accordance with the law and, for example, never makes extra-legislative agreements on rates or exemptions. As a general rule, tax authorities endeavour to conclude pre-sale agreements within eight weeks. However, in practice, complex cases may take longer. In 2018, an APA application lasted an average of about 14 weeks. Thanks to prior advice, we offer companies operating nationally and internationally (but also individuals and small entrepreneurs) the opportunity to obtain in advance certainty about the application of tax laws and regulations. . .