Netherlands transfer pricing documentation guide
March 10, 2008
Monique van Herksen, a principal in Baker & McKenzie in Amsterdam, outlines the Dutch approach to transfer pricing documentation
The Dutch tax authorities adhere in general to the OECD Transfer Pricing Guidelines in applying the arm’s length standard, although also specific transfer pricing rules exist under domestic tax law. The arm’s length principle is included in article 8b of the Dutch Corporate Income Tax Act 1969 (Wet op de vennootschapsbelasting 1969) (CITA). In The Netherlands, the arm’s length standard is included in statutory law in section 8b of the CITA. The statute says when taxpayers are associated (consistent with article 9 of the OECD model convention on the avoidance of double taxation) and that they are required to maintain information regarding cross-border transactions with related parties from which it can be determined that conditions are applied that would have been applied to transactions with unrelated parties as it regards transfer prices.
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