• Register
Return to: Home > News > Tax > Tax information exchange agreement signed between USA and Netherlands

Tax information exchange agreement signed between USA and Netherlands

The USA government has signed a tax information exchange agreement with the Netherlands for income and taxes paid of multinational companies to be automatically exchanged between the Dutch Tax and Customs Administration and the USA tax authorities.

Under rules issued in 2016, the USA requires entities with revenues of $850m or more in the preceding accounting period to file Form 8975, country-by-country report, with the US tax agency, the Internal Revenue Service (IRS). These rules follow USA reporting requirements and the OECD’s Action Plan on Base Erosion and Profit Shifting (BEPS) to stop multinational companies from shifting profits to low tax jurisdictions.

This agreement with the Netherlands will allow USA multinational companies to file Form 8975 with the IRS if the multinational is resident for tax purposes in the Netherlands or has a permanent establishment there.

The agreement stated that both countries recognise that each jurisdiction has the appropriate safeguards in place regarding confidentiality and use of information, as well as the infrastructure for an effective exchange relationship.

The USA has not signed the OECD’s Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports and therefore, must individually negotiate agreements with countries.

Top Content

    Blockchain and the Big Four: does it deserve all the hype?

    Although still in its infancy, blockchain is one of the most talked-about technologies of 2018. Will the blockchain bubble burst, or will it live up to its reputation as the ‘new internet’? Eleanor Jerome investigates

    read more

    Malaysia: Ready to show its strength

    Recent changes have enhanced the quality of audit reports in Malaysia, giving the profession a welcome opportunity to demonstrate its value to clients. Paul Golden reports

    read more

    China: Regulating the Chinese dragon

    Harsh regulatory actions and looming US trade wars have been dampening expectations in a Chinese market still full of potential, finds Jonathan Minter

    read more

    Indigenous Australians: New checks and balances

    With fewer than 40 known qualified Indigenous Australian accountants, Jonathan Minter speaks to Shelley Cable from PwC Australia about how increasing this number is an important part of improving the financial literacy of Indigenous communities

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.