• Register
Return to: Home > News > Professional Bodies > 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

    Choosing the right location can have cast-iron benefits

    As Game of Thrones, one of the biggest television shows of all time, comes to an end, Joe Pickard looks at how tax incentives offered to television and film production companies help the wider economy.

    read more

    Primary financial statements: a game changer in reporting?

    International Accounting Standards Board chair Hans Hoogervorst delivered a speech at the Seminario International sobre NIIF y NIF, organised by the Consejo Mexicano de Normas de Información Financiera in Mexico. The Accountant presents the highlights.

    read more

    FASB readies standards for the netflix generation

    The US Financial Accounting Standards Board (FASB) has updated its accounting standard for entertainment, with a specific eye on keeping up to date with how episodic content, such as television programmes, is consumed in the modern world. Jonathan Minter reports.

    read more

    Brexit: why it takes two to tango

    Former TA editor Vincent Huck, now editor of Insurance Asset Risk, looks at why Brexit might unleash geopolitical intrigue in Europe’s accounting standard-setting scene – and why IFRS 17 will be an incredible source of opportunity for firms in the coming years.

    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.