Key Benefits:
Act of 17 February 2007 adapting the regime laid down in the Law on Corporate Tax 1969 concerning the conversion of a permanent establishment with losses in a holding
We Beatrix, at the grace of God, Queen of the Netherlands, Princess of Orange-Nassau, etc. etc. etc.
All of them, who will see or hear these, saluut! do know:
In this regard, we considered that it would be desirable to supplement the scheme which, after the conversion of a permanent establishment with losses to a holding, excludes the exemption from the participation in corporation tax until the end of the period of application of the amount of the losses previously taken into account;
In this way, we, the Council of State, and with the mean consultations of the States-General, have been well-regarded and understood to be right and to be understood by the following:
1 For the purposes of applying Article 13c (4th paragraph) of the Law on Corporate Tax 1969 becomes it in the first member of that Article shall be reduced by the amount set out in the following sentence, to the amount of outstanding losses incurred from foreign undertakings. The amount of the reduction shall be equal to the positive benefits received by the taxpayer from the investee before the date of entry into force of this Act, on which the grant exemption would not have been applied if the fourth member had already made part of the aforementioned Article 13c from the entry of that Article in the Law of corporation tax 1969 pursuant to the Law of 25 April 1990, Stb. 173, to the extent that these positive benefits were related to positive profits of the Article 13c, first paragraph , company.
2 An investee to which this Act enters into force immediately Article 13c (4th paragraph) of the Law on Corporate Tax 1969 may be applied to the value in economic traffic at the time of the immediately preceding date.
This Act shall enter into force from the first day following the date of issuance of the Official Gazette in which it is placed.
Burdens and orders that it will be placed in the Official Gazette, and that all ministries, authorities, colleges and officials who so concern will keep their hands on the precise execution.
Given at Lech, 17 February 2007
Beatrix
The Secretary of State for Finance,
J. C. de Jager
Issued the eighth of March 2007The Minister of Justice,
E. M. H. Hirsch Ballin
