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Why XBRL could be more essential than expected

07 Jul 2021

Current news, ESEF, Europe, Netherlands, XBRL

electronic deposit annual report, ESEF, SBR, what is XBRL, XBRL, XBRL software

From paper to digital, from local to international standards (such as IFRS). Annual changes are no longer a surprise for companies. In addition to local rules and standards, more and more companies are confronted with international innovations, such as the influence of the Standard Business Reporting (SBR) system. For example, the XBRL format is not new and is not mandatory for everyone. Yet, it is fiscally helpful to keep an eye on updates regarding XBRL. This article briefly explains what XBRL is all about and how you can prepare for any (future) obligations.

XBRL in a nutshell

XBRL (EXtensible Markup Language) is an open international standard for digital business reporting. Millions of XBRL documents are added every year, with paper reports replaced by more effective and accurate digital versions. With XBRL, reporting terms can be authoritatively defined. Furthermore, you can represent the contents of financial statements, compliance, performance and business reports. For example, you can convert paper, PDF, and HTML-based reports into a digital XBRL-format in no time, allowing for quickly and accurately moving information between organizations. Therefore, using XBRL allows more people to use, share and analyze the data.

With XBRL, organizations can publish reports to ensure that the content can be accurately consumed and analyzed. Following a set of business and logical rules will go smoother and captures any errors at the source, ensuring error avoidance. In addition, it is crucial to ensure that the data provided conforms to advanced pre-defined definitions and taxonomies, which vary by country. The user can customize language and currency in their preferred style as well. Finally, comprehensive taxonomies and accurate tags allow for continued preparation, validation, publication, exchange, consumption and analysis.

XBRL in the Netherlands: From Micro to Large Enterprises

As of the financial year 2016 (1 January 2017), micro and small enterprises are no longer allowed to deposit publication documents via paper. In the Netherlands, electronic deposits are made through SBR, a digital delivery via Digipoort, by the intermediary or entrepreneur. In addition to this SBR method, entrepreneurs can also use the online service of the Dutch Chamber of Commerce, where they can deposit annual reports.

From the financial year 2017 (1 January 2018), the mandatory digital depositing also applies to medium-sized companies, except for medium-sized subsidiaries with a large company or listed company as a parent company. Large companies will still be excluded from the obligation in 2021.

Meanwhile, listed companies must adhere to the European Securities and Markets Authority (ESMA). ESMA prescribes that European listed companies must file their deposit accounts from the 2020 financial year based on ESEF (European Single Electronic Format).

At present, further mandates of XBRL and ESEF are still underway, with delays related to the current pandemic. Nevertheless, the first official Dutch ESEF publication was included in February 2021. Furthermore, SBR has set goals for organizations in the Netherlands to help exchange data in a structured, standardized and electronic manner according to a fast, effective and error-free method. SBR will continue to collaborate with the Dutch government. However, they will also collaborate with other organizations.

The Possibilities

The technical aspect of XBRL and XBRL-based software is often underestimated. Especially for large international companies, a good eye for detail can make all the difference in complex situations. XBRL itself is not a commercial product. However, XBRL-certified organizations and software vendors offer specific applications and services. They can significantly speed up and simplify the processing process. An example of a software supplier and service provider is Amelkis. With the Amelkis XBRL software, companies can import PDF registration documents and quickly convert them to HTML. In addition, they offer workshops for full software support. Therefore, they help hundreds of organizations every year with XBR-related matters, such as exchanging data between systems and periodically compiling reports from various sources.

In the end, there are several advantages to invest in commercial XBRL software. For example, the larger and more complex a company structure, the more tags and details apply. Subsequently, the ESEF requirements and the accounting standards selected by the organization must also be taken into account. With XBRL-software, you can process XBRL-based data in any XBRL-enabled software. In addition, the XBRL format is based on taxonomies, with tags depending on the need or demand. In addition, to save much time, you do not always have to re-enter specific data in the software.

Making the right choices can be challenging. In addition, constant updates from SBR, XBRL International and local governments require constant attention. If you have any questions about your business situation, please do not hesitate to contact us. Although XBRL may or may not be mandatory for your company, being well-prepared creates more certainty in the long term. A good start is half the work, which we are happy to help you with.

Bronnen

XBRL International – Standard Business Reporting – Kamer van Koophandel – Amelkis

Cross-Border Positions during the pandemic

Image by slon_dot_pics

Cross-Border positions, also referred to as external positions, are most likely for any organization that goes global. Suppose your organization has its main office in, for example, the United States, with branches in Europe and/or Asia. In that case, you will have asset and liability positions of reporting banking offices outside the US. Cross-border financing helps with international trade by providing a source of funding, enabling businesses to compete globally and beyond their domestic borders. This sometimes requires the lender or provider to act as an agent between companies, suppliers, and end-customers. Examples are cross-border loans, letters of credit, repatriable income, or bankers acceptances (BA).

With the global pandemic forcing organizations to change strategies or even their core business, many have expanded globally or relocated to another country. We have taken a closer look at the changes in cross-border positions worldwide by viewing outstanding claims and liabilities of Q3 2020 in trillions of US dollars.

Developed countries

Between Q3 2019 and Q3 2020, cross-border claims on developed countries increased by 1.75 trillion USD, with the liabilities increasing by 1.46 trillion USD.

Claims in developed countries, otherwise called advanced economies, have declined. Intragroup positions partly drove the movements from one year earlier. The decline is centered on related offices, especially on those in the US, due to the unwinding of central bank dollar swap lines.

Non-bank financial institutions (NBFIs) were involved with the decline; claims on the UK, the Netherlands, Luxembourg, France and Italy declined, with most of them vis-à-vis NBFIs. Another partly offset influence was the increase in Japan and Germany’s claims, notably their NBFIs and resident banks.

During the pandemic, creditor banks in developed countries and offshore centers have reported a large contraction in their cross-border claims on emerging markets and developing economies (EMDE). During Q2 and Q3 of 2020, global cross-border shares on emerging markets and developing economies declined by 95 billion USD. Major developed countries and offshore creditors – such as UK, US, Hong Kong, Singapore and Japan banks – reduced their lending to developing countries by 97 billion USD in these six months.

Offshore centers

The Q3 2020 claims have increased by 0.07 trillion USD in the offshore centers, with the Q2 2020 liabilities increasing by 0.15 trillion USD.

Compared to claims on developed countries, claims on offshore centers expanded by 41 billion USD. Especially Hong Kong SAR and the Cayman Islands have been doing well. More than half of Hong Kong’s increase was intragroup claims, with Singapore and Bermuda having the least growth.

Emerging market and developing economies

The Q3 2020 claims increased 0.03 trillion USD compared to Q3 2019. The Q3 2020 liabilities, compared to Q3 2019, have increased as well, with 0.13 trillion USD.

Cross-border claims on emerging markets and developing economies continued to fall, driven again by claims on Latin America and the Caribbean, with the year-on-year growth remaining negative. Just as one year earlier, these movements were partly driven by intragroup positions. Claims on non-financial corporations in major economic regions of Brazil, Mexico, Chile, Colombia and Argentina declined the most.

As mentioned earlier, creditors reported a large contraction in cross-border claims in developing countries. However, simultaneously, creditor banks within these countries reported a modest expansion. In contrast to the reduced lending of 95 billion USD, banks in EMDE booked a 26 billion USD increase in cross-border claims during Q2 and Q3 2020. The banks that led this expansion in emerging Asia-Pacific were mainly China and Chinese Taipei.

Before you expand or start abroad, it is helpful to know what parts of the world are convenient for your business. Having cross-border positions in countries such as the US, the Netherlands, France, Germany, and Japan can be rewarding; however, even though they work well together, each country and/or state has individual rules. Meanwhile, China and Russia have many business opportunities, but you must have high insider knowledge to use and find all the business possibilities. The UK has always played a big part in the global economy; however, much has changed due to Brexit. In case you want a professional to help you with this, feel free to send us a message. As the saying goes: a good beginning is half the work.

Related GCA articles:

The 2021 New Year Resolutions of China in Economy and Finance

The Brexit impact on Japan

Brexit: Some pointers for you and your company

More Global Transparency on Assets and Less Tax Havens on the List

Cooperation between China and Central-Eastern European Countries (CEEC) is to be deepened

Sources

BIS

“How can I receive financial aid in the Netherlands?”

04 Feb 2021

Belgium, COVID-19, Current news, Europe, Financial aid, France, Germany, Netherlands

Seeing the forest for the trees during the COVID-19 pandemic is a significant challenge. What rights do you have in the Netherlands as a (non-)Dutch business owner? Access to specific support packages depend on your living and working situation. If you live in France, for example, but pay taxes in the Netherlands, you can use schemes of the Dutch Tax Authorities, such as “special deferment of payment” and “reduction of the provisional assessment.” What kind of help is out there for foreign employees in the Netherlands? What can you do if your Dutch company is located in France? Which financial aid packages apply to you? We have listed relevant financial aids for you.

The WW (Unemployment Insurance Act)

In case you have employees whom you have employed for an indefinite period, you must record their employment contracts in writing to apply for the low unemployment insurance premium. You must indicate that you have done this in the tax return, even if it is still incomplete. For employees who started working before 31 December 2019, you had the option to arrange this until 1 July 2020. Many companies and institutions, such as hospitals, are now dealing with the WW’s premium differentiation. The Dutch cabinet had therefore decided to give employers more time, mainly due to the coronavirus impact.

An immediate record of the employment contract in writing is necessary for employees who entered your company after 31 December 2019. This contract does not necessarily have to be on paper; you can save the employment contract digitally if you have signed and scanned the written agreement or if you set up a digital contract with a qualified electronic signature from you and your employee. Further options are to send the employment contract by e-mail, to which the employee replies that they agree. Another option is to save the employment contract in your HR-system.

Due to the coronavirus, many sectors, such as healthcare, have to deal with much extra overtime. As a temporary scheme, no employer, regardless of the industry, has to pay the high unemployment insurance premium retroactively in 2021. Usually, this was required if employees with a permanent employment contract of <35 hours worked overtime for 30%.

Widening of the free space

Under the work-related expenses scheme, you have the option of spending part of your taxable wages on untaxed allowances, benefits in kind, and provisions for your employees. The free space on your taxable salary, up to and including 400,000 euros, is 3% in 2021. The year before, this was only 1.3%. For amounts of the wage bill above 400,000 euros, the free space remains 1.18% in 2021.

This space offers you an opportunity extension to provide extra support for your employees during the pandemic with the financial scope. You can kill two birds with one stone by purchasing a gift voucher or gift package for your employees. By doing that, you help both your employees and the sectors affected by the crisis.

Reduction of the average wage

If you are dealing with a decrease in turnover due to the corona crisis, you may set the customary wage lower for your payroll tax returns for 2021 and 2020. To do this, you do not need permission from the Dutch tax authorities. However, it would be best if you meet the following conditions: pay attention to the current account debt or dividend, the wages of the holder of substantial interest, and turnover influencing due to special matters (e.g., a strike, merger, or division). You determine the customary wage of 2021 by dividing the “2021 turnover excluding VAT” by the “2019 turnover excluding VAT.” Multiply this amount by the customary of 2019. You can read the 2020 and 2021 calculation overview on the Dutch tax authority website.

Frontier work

Each country has its corona measures, which affect employees who live or work across the border. There are various options for frontier workers; the Netherlands works efficiently with Belgium and Germany. The following applies to the withholding and remittance of payroll tax:

No changes take place for the home frontier worker
You can continue to deduct Dutch payroll taxes from your salary

However, what does this situation look like if you are an employer who employed French workers? What if they are forced to stay at home while retaining their salary? To ensure that entrepreneurs who live or work across the border are not left out, the Dutch government has used the Tozo loans. Entrepreneurs can apply for this benefit, for example, from 1 March 2021, with retroactive effect from the previous month (1 February 2021). From 1 October 2020 to 1 April 2021, the third Tozo support package, Tozo 3, is active. Tozo 4 is operational from 1 April 2021 to 1 July 2021. Examples of the Tozo scheme are:

Do you live in France, but do you have your company in the Netherlands? You can receive a Tozo loan for your working capital of up to 10,157 euros. You can submit your Tozo loan application to the municipality of Maastricht. However, for your livelihood, you have to rely on social assistance in France.
Do you live in the Netherlands, but do you have a company in France? If you meet the conditions, you can receive a Tozo benefit for your living expenses. However, this cannot be done in your working capital; you must arrange this in France.

If, as a Dutch company, you employ a French employee during the pandemic, you can make use of the relaxation of administrative obligations for payroll taxes. You may not determine the French employee’s identity at this time through a physical ID. Usually, the employee falls under the anonymous rate of 52%. However, you do not have to do this until the 30^th or June 2021. You must still apply the employee’s identity correctly as soon as possible. Due to the prescribed working from home and maintaining a distance of 1.5 meters, it can be challenging to comply with all administrative obligations for payroll taxes. In this case, the tax authorities will not impose any consequences.

NOW (Temporary Emergency Bridging Measure to maintain Employment)

The NOW organization scheme replaces the WTV (Shortening of Working Time). The NOW is a substantial contribution towards wage costs, for which you receive an advance from the UWV (Institute for Employee Insurance). This allowance goes from 80% to 85% of the wage bill. The wage bill exemption remains 10%. If your company has a Dutch business address, you can use NOW. If your company has a French business address, but you and your employees are covered by the Dutch social insurance, you can apply for NOW as well. The application period for NOW 3.2, under modified conditions, is from 15 February 2021 to 14 March 2021. NOW 3.3. will most likely take place from 17 May 2021 to 13 June 2021.

TVL (Allowance Fixed Expenses)

SMEs and self-employers have the option of obtaining a partial allowance for fixed expenses. If you have a structural turnover loss of >30% and meet the conditions, you can request an allowance of up to 90,000 euros from the TVL through the RVO (Netherlands Enterprise Agency). This TVL scheme applies from 1 October 2020 to 30 June 2021.

Fixed travel allowance

If your employees receive a fixed travel allowance, you do not need to adjust this allowance, even if they work entirely or mainly at home due to the pandemic. Until 1 April 2021, the existing fixed travel allowances can still be reimbursed tax-free by the employer, even if these are no longer (fully) implemented. You must meet this condition as an employer: the fixed travel allowances were granted by you before 13 March 2020. If you want to read more information, the Dutch tax authorities have made an FAQ overview about payroll taxes and travel expenses during the corona crisis.

From 1 June 2020, the Dutch government implemented the rule that everyone on public transport must wear a mask. Until 1 April 2021, you may reimburse or provide masks’ costs tax-free to your employees as a targeted exemption.

WHOA (Homologation Private Agreement in Bankruptcy Act)

If you are at risk of bankruptcy due to high debts while still running a viable business, you can agree on a debt settlement with the WHOA without all creditors’ consent. Companies without good survival chances also benefit from this agreement because they can quit without bankruptcy. Besides, you keep control of your company during the WHOA-process. With the WHOA-Roadmap, you can follow the step-by-step path from preparation to an agreement:

You consult with creditors.
You make agreements.
These agreements are recorded in a draft agreement.
You submit the draft agreement to your creditors and shareholders.
You organize a vote for creditors and shareholders.
One week after the vote, you draw up a report on the outcome.
You submit the composition to the court.
The court 9homologation) confirms the compulsory) agreement on the proposed debt settlement.

The content and structure of the agreement must, however, comply with the regulations. For example, you must divide your creditors into classes or a hierarchy. The WHOA gives you the freedom to set this up yourself. If you fail to approach one or more creditors, these creditors retain their right to full payment of your outstanding debts. A majority within a class must agree to the proposal. The aim of the agreement must be that your company will be financially healthy again after restructuring. If your company has no survival chances, a better result should be achieved through this agreement compared to bankruptcy. Besides, the agreement must be feasible and well-thought-out, under the legal regulations on the agreement’s decision-making and content. Finally, the agreement must be reasonable; the plan is not intended to put creditors and shareholders in a disadvantageous position and suddenly change your staff’s terms of employment.

Do you have offices, units, or shares in France or the EU? Then you can benefit from a general agreement procedure, thanks to the recognition of the EU member states. The registration and publication of these approval procedures are in the public Insolvency Register. From 1 April 2021, these will most likely be entered in the Trade Register as well.

Whether or not corona still exists, the Dutch government and tax authorities request you to prepare everything in a timely matter. If you request a deferment of payment, you do not have to pay immediately. Send your declaration in good time, even during the crisis, because the UWV needs data to use specific support schemes as useful as possible. If you are entitled to emergency funds, you can rely on these by having your papers in order. As you can see in this article, if you meet the conditions, you have many options for obtaining Dutch government support. The Netherlands mainly cooperates effectively with Germany and Belgium, but there is support available for French workers and companies as well. We especially recommend keeping an eye out on the current information, data, programs, forms, and disruptions via the Dutch government websites. In addition, we are always ready to talk to you and support you.

Related GCA articles:

Corona Countermeasures on Tax Matters Recommended by OECD

Press Conferences in Japan and the Netherlands: Different news, different actions

Sources:

Government of the Netherlands – Belastingdienst – the Municipality of Maastricht– RVO – UWV – KvK

The investment for the future: Hydrogen

20 Jan 2021

Europe, Japan, Netherlands

Europe, Hydrogen, Japan, the Netherlands, TopDutch

Photo by Jeff Kubina

A lot has changed since the 1800s, where during the industrial revolution, humanity produced carbon dioxide (CO2) and other gasses that could harm the climate. The main difference is that these effects used to be mainly local, not global as they are now. However, humanity needing energy sources to survive has not changed in these 200 years. How do we combat global warming? We could stop using electricity and gas altogether, but that is most unlikely. The solution to our problem is using green energy: Now is the time to invest in Hydrogen!

What and where is Hydrogen?

DUJAT describes Hydrogen as a fashionable energy vector due to its potential to support the transition to a decarbonized energy system required to meet the Paris Agreement’s emission reduction goals.

If there is one country doing Hydrogen justice, it is Japan. While Europe is slowly but surely starting with the Hydrogen process, Japan already produces Hydrogen domestically. Hydrogen is made from natural gas and oil and provides energy for residential buildings, experimental power plants and fuel cell vehicles. To show that Japan is the Hydrogen Nation, the First Hydrogen Olympic Games are an inspiration to follow. Now you might wonder, if Japan already uses Hydrogen to provide for heat networks, how is Europe doing at this moment?

TopDutch

Sander Oosterhof, Director of Foreign Direct Investment and Business Development of NV NOM, explained why the northern province of the Netherlands, Groningen, has always been crucial for energy production. The TopDutch region collects interconnected, purpose-driven and people-powered ecosystems. These ecosystems are committed to finding green and digital solutions for global economic, social and ecological changes. In other words: investment in sustainable mobility with electrification, hydrogen technologies and new infrastructures.

According to Catrinus Jepma, Professor emeritus of the University of Groningen & Senior Advisor of the New Energy Coalition, the Netherlands may not be Hydrogen’s leader but the project-planning leader. Currently, the Netherlands and Europe thrive on oil, gas, wind and sun. GasUnie provides windmill parks in the North-Sea and extensive gas infrastructure. However, the gas and oil period is ending, and what if there is not enough sun and wind to produce sufficient energy? How do you store and transport excess energy? To start answering these questions, the Paris Agreement has set up goals for 2030 and 2050 to implement Hydrogen as efficiently as possible. By 2050 the EU aims to be climate-neutral with net-zero greenhouse gas emissions.

Europe’s Valley of Death

Europe needs to have a completely green system; this seems impossible, but 20 years ago, renewable energy was only 10%, whereas it is now 30%. Every 15 years, the goal is to improve renewable energy levels. This includes the transition from blue Hydrogen (natural gas to H2) to green Hydrogen (green gas to H2).

For Europe to move forward, governments need to get through the ‘valley of death.’ Many discussions surround renewable energy, which is not necessarily bad, but crucial decisions need to be made soon. Governments need to support industry investment initiatives in producing, transport, storing, and implementing Hydrogen. This support needs to line up with surrounding countries by, for example, launching a supporting research agenda.

The Dutch have their hands full with the Paris Agreement goals (as the Dutch would say, “Er is werk aan de winkel/There is still a lot to do”), but there are many opportunities. René Schutte, Hydrogen Program Manager of GasUnie, explained how the Netherlands has many options for current and future Hydrogen projects. He calls this the TopDutch call to action.

The Dutch (gas) infrastructure

GasUnie provides access to its system to the public. With the decrease of natural gas and the increase of green gas, CO2 needs to be reduced upfront. What the future holds can be seen in the image above:

The Hydrogen infrastructure adjoining the natural gas/biogas infrastructure
The increase in green gas production
The windmill parks providing power-to-gas
The storage and transport of CO2
The industry cluster and heat network interconnected with the points above

“I want to invest in Hydrogen projects. What does that look like?”

There is much scaling up to do to increase renewable energy. Current phased roll-outs are implemented with a programmatic approach. These roll-outs ask for a lot of cooperation and funding between governments and industries. Luckily the interest in this Hydrogen project grows. For example, at this moment, the New Energy Coalition is working on HEAVENN: a Hydrogen Valley. International roll-out programs like these are crucial for the continuous development of Hydrogen in Europe.

What now?

Future investments make sure that not only industries but the entire world can continue to grow. We need to continue to think critically about our innovation methods. What are our long-term goals; how do our actions of today impact our future? Are you wondering how the future of your company unfolds? We would love to talk to you about it. In case you and your company are considering investments in Hydrogen, do not hesitate to contact NV NOM, the University of Groningen and/or GasUnie. Let’s go global; let’s go TopDutch!

Sources:

DUJAT – NV NOM – University of Groningen – GasUnie – the Paris Agreement – Japanese Olympic Committee

Press Conferences in Japan and the Netherlands: Different news, different actions

28 Dec 2020

Current news, Japan, Netherlands

COVID-19, Japan, press conference, the Netherlands

A press conference can help see the impact the coronavirus has and how each country handles it. The Dutch government and the government of Japan both have stated their significant concerns on the critical situation of the rise of corona cases. You might wonder, “Then the situation in Japan must be just as critical as in the Netherlands.” Yes and no.

Whereas in the Netherlands, the current total cases are around 762.985, Japan has about 221.412 cases¹. If you would show these numbers to a Dutch person, they will most likely react confused to the Japanese’s concerns since these numbers are less than those of the Netherlands. Perhaps it has to do with Japan’s collective culture, while the Dutch culture is significantly individualistic. Or has it to do with actively preventing the infections of the coronavirus? The density level in Japanese cities is more significant than in Dutch towns; thus, a domino-effect could happen without the right actions. Let’s take a closer look at the press conferences earlier this December. Who is speaking, and what are they saying?

¹These numbers are based on the data from HU CSSE COVID-19 Data on 28/12/2020.

The press conference in Japan: Support & Vaccination

On the 11^th of December, 2020, at 2:53 P.M., Tamura Norihisa (田村憲久) the Ministry of Health, Labour and Welfare (厚生労働省), held a press conference. During the conference, he addressed various concerns for those who find it difficult to get by during the year-end and New Year holidays. Norihisa addressed the vaccination process in Japan, as well.

The government requests local bodies to establish a system by making preparations and arrangements to open temporary contact points and secure locations for temporary lodging during the end of 2020 and 2021. In addition, the Hello Work public employment offices are setting up a system where advisers are on duty to listen to individual circumstances. A prime example of their work is providing support to those who have no place to live due to becoming unemployed during the pandemic.

Norihisa addressed the vaccines from AstraZeneca as the second point of the press conference. The Japanese government has closed an official agreement with AstraZeneca, which will supply 120 million vaccinations for Japan. During the first quarter of 2021, 30 million vaccinations will be provided. Regarding the vaccines, the Health and Welfare Science Council met on the 10^th of December to study the system for administering and distributing the vaccines in each local municipality. They want to ensure that the vaccination process goes as smoothly as possible.

Financial help in Japan

Regarding the Special Emergency Petty Cash Funds, the government has extended the deadline for applications following the economic measures. This deadline used to be the end of December 2020, but will now be the end of March 2021. In addition, the maximum payment period of the Cash Payment for Securing Living Quarters will be extended from the current nine months to twelve months. Single-parent households will receive a re-payment of extraordinary special benefits as well. Click here to read more about the financial arrangements (in English and Japanese).

Press conference in the Netherlands: Lockdown

On the 14^th of December, 2020, at 7 P.M., the Netherlands’ Prime-Minister, Mark Rutte, held a press conference. This press conference was more a speech to the people since he announced a strict lockdown to prevent more coronavirus infections. The number of corona infections is increasing, with many new cases added every day. The Netherlands is in lockdown from the 15^th of December 2020, lasting until the 19^th of January 2021. Whereas during the press conference of Norihisa, the only background noises you could hear were the camera shutters, the background noises during Rutte’s speech were protestors.

Rutte addressed the elephant in the room: this Christmas will be gloomy. From the 16^th of December 2020 to the 18^th of January 2021, online education will become the norm from primary education to universities. There are exceptions for practical training and personal guidance for students with special needs. Childcare is closed as well, with an exception for parents with vital professions. Meanwhile, the government strongly advises everyone to work at home, unless it is not possible. Only essential shops will remain open, such as supermarkets, financial and government organizations. Other shops and restaurants can only make use of take-away and pick-up services.

Rutte hopes that the vaccination process can start at the beginning of the next year. He calls this process the hope for 2021.

Financial help in the Netherlands

The ministry is releasing a new substantial support package, based on the volume of loss. Subsidies can be applied for from the 15^th of December. The higher the loss, the higher the financial assistance. On the governmental website (Rijksoverheid), companies can (re-)apply for support and recovery packages with temporary financial arrangements, social packages and investment measures. The Chamber of Commerce and the employers’ organization VNO-NCW/MKB Nederland have created aid packages as well. Read more about financial arrangements here (in Dutch).

We understand that the current happenings around the coronavirus can affect your business. In case you are considering expanding your business to Japan or the Netherlands, but wonder if this is the right moment, and if not, what preparations for the future you can do: please talk to us. We wish to help you in any means possible.

Sources:

Google / JHU CSSE COVID-19 Date – Ministry of Health Labour and Welfare – Rijksdienst voor Ondernemend Nederland – Rijksoverheid

Country by Country Reporting

26 Jan 2017

BEPS, Country by Country Reporting, Current news, Netherlands, Tax Planning

New Challenges for Companies Active in International Markets

Country by Country Reporting (in short CbCR) is part of the action plan of the OECD and G20 Member States to reduce base erosion and profit shifting (BEPS) in multinational corporations. The draft aims to counteract multinational companies’ skillful ability to take advantage of different tax systems. In the future, companies should pay their taxes in the countries in which the added value is generated. For this purpose, profits, tax payments, and entrepreneurial activities should be prospectively documented for each country.

Companies with Annual Turnover of € 750 Million and Above

In principle, Country by Country Reporting applies to multinational corporations with an annual turnover of € 750 million and above if a company’s consolidated report includes at least one foreign company or a foreign permanent establishment. All documentation must be drawn up and disclosed on an annual basis. Each national tax authority may then exchange the data with other foreign tax authorities.

Country by Country Reporting as Part of Transfer Pricing Documentation

Country by Country Reporting is included in Action 13 of the OECD’s BEPS initiative, which requires that transfer pricing documentation in the future is conducted based on a three-tiered structure. This means that the requirements for transfer pricing documentation developed almost 20 years ago have been completely revised. In the future, the documentation requirements should be completed based on this three-tiered approach: a master file, company-specific documentation in the local file, as well as country-specific reporting in the form of Country by Country Reporting.

Criticism from Different Viewpoints

While NGOs such as Tax Justice Network, Oxfam or Tax Research UK say the new regulations are not consistent enough, the OECD’s Business and Industry Advisory Committee (BIAC), which represents the interests of the industry, warns of significant administrative overhead and increased costs incurred by companies.

New Compliance Requirements

The guidelines for Country by Country Reporting have already been ratified by most European countries, the United States and Canada. Given these developments, the major accounting firms warn their clients of the risk of double taxation and complex compliance requirements. Therefore, companies should study the new regulations at an early stage and adapt their operations to them.

The Netherlands: An Ideal Location for Companies

23 Jan 2017

Current news, Netherlands, Tax Planning

How IKEA, Starbucks and the Rolling Stones Benefit from the Netherlands as a Financial Center

According to the Dutch newspaper Financieel Dagblad, the Netherlands is the financial hub of the world. Many multinational companies such as IKEA and Starbucks call this small country on the North Sea home.

Tax Conventions with over 80 Countries

An open trading culture, great level of internationalism and hospitality characterize the interactions in this traditional trading nation. The Netherlands offers excellent business infrastructure, optimal tax conditions for foreign companies and tax conventions with over 80 countries. Multinational companies also have the opportunity to reach separate, confidential agreements with the Dutch Tax Office.

Low Taxes on Interest, Dividends, and Intellectual Property

The Dutch state collects little or even no taxes on income such as dividends and interest that companies have generated abroad. The same applies for patents, trademarks and licensing rights. These tax conditions allow multinationals to save a significant amount of money.

Tax Planning in the Netherlands

This is not tax evasion, but rather legal tax planning and is used by more than 12,000 foreign companies in the Netherlands. Even the share of German companies is growing steadily. More than 800 German companies have subsidiaries in its neighboring country and benefit from the Netherlands as a financial center.