Interest deduction: state of play in the Netherlands

There is currently an important case referred to the Court of Justice of the European Union in which the Dutch Supreme Court inquires whether related-party loans that are at arm’s length can or perhaps necessarily fall outside the scope of domestic anti-abuse provisions. Basically, this would allow for an escape for at arm’s length related-party loans for the purpose of anti-abuse provisions. The outcome of this case could have a significant impact on Dutch taxpayers.

In this edition of Quoted the Dutch interest deduction limitation rules are described and both the impact of relevant (pending) court cases and international developments are addressed.