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The Netherlands Clarifies Conditions for Substantial Economic Activity for New CFC Rules

|Approved Changes|Netherlands
Netherlands

On 31 December 2018, the Netherlands published a regulation from the Secretary for Finance on amendments to certain implementing regulations in relation to tax changes for 2019. This includes, among other things, clarification on the meaning of substantial economic activity in relation to the new controlled foreign company (CFC) rules. In general, an exemption from the rules applies if the CFC undertakes substantial economic activity. In this respect, the exemption will apply if the following…

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