Examples of Dutch CITA in a sentence
These include:• interest-deduction limitations for hybrid debt (articles 10 and 10b Dutch CITA), and• anti-base erosion rules (article 10a Dutch CITA).
Therefore the formal notification was withdrawn by The Netherlands.33The Dutch innovation box regime is a generic tax measure that applies to all companies who are subject to tax under the Dutch CITA (both Dutch based companies as foreign companies), independent of the economic sector in which they operate or the economic activities they perform.
This is the case if the taxpayer develops the purchased asset into a new intangible asset for which a separate R&D certificate and/or patent is granted.60 According to article 12ba paragraph 5 of the Dutch CITA, the innovation box is only applicable to the developed portion of the immaterial asset.61 Whether the taxpayer complies with the above-mentioned criteria needs to be determined based on the facts and circumstances of each separate case.
In light of the tightened capital requirements for (re)insurers under Solvency II, the Dutch CITA is amended to secure that additional Tier 1 capital for (re)insurers also qualifies as debt for Dutch CIT purposes.
It was under- stood, however, that it was already applicable through general principles regarding profit deter- mination, which were enacted in Article 8 of the Dutch CITA.
The aforementioned article 8b was codified in the Dutch CITA 1969 in 2002 as a method to set forth within the Dutch Domestic Law the arm’s length principle in accordance with the international standards set out by article 9 of the OECD Model Convention.
However with regard to the fourth criteria some controversy can be found in tax literature.20 The majority view in literature21 is that the Dutch innovation box regime is a generic tax measure that applies to all companies who are subject to tax under the Dutch CITA (both Dutch based companies as foreign companies), independent of the economic sector in which they operate or the economic activities they perform.
NLCo. was subject to the Dutch CITA (25% CIT rate) and applied the Dutch participation exemption regime to avoid that the dividends would have been taxed twice in Italy and the Netherlands.CJEU Securities (C-389/18) It could also be argued that the Italian Revenue Authorities differentiate between a cross-border distribution of a dividend by an Italian subsidiary to a parent company in an EU Member State and the distribution to an Italian parent company.