Mismatches tackled on applying the arm's length principle
In the Tax Plan 2022, the government has included a bill to prevent mismatches when applying the arm's length principle.
On the basis of the 'at arm's length principle', transactions within a group must be at arm's length. Problems arise because other countries do not apply this principle, which can lead to differences (mismatches) in international situations (i.e. deduction but no corresponding taxation).
A separate bill includes measures that will take effect on January 1, 2022. The aim is to prevent these mismatches. More information about the plan to prevent mismatches can be found in the article These are the five most important changes in the international field.
Want to know more?
Would you like to know more about combating mismatches when applying the arm's length principle? Our tax advisors would be happy to assist you. Please contact Daniël van Meijgaarden, senior tax advisor, on telephone number +31 165531348 or send Daniël an e-mail.