Why Dutch R&D deduction may cause inconsistencies with transfer pricing
January 10, 2012
Sophie Ashley - TPW
The Netherlands has introduced a deduction for capital expenditure associated with R&D, effective January 1 2012, which has implications for transfer pricing.
The Dutch parliament was concerned that the deduction could entice companies to inflate their prices in related party transactions and so issued a decree containing a transfer pricing clause in the official gazette at the end of December 2011.
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