Amsterdam June 28, Round Table Innovation Box.
HVK Stevens, Quantera Global and Kennedy van der Laan hosted a round table on the international tax, transfer pricing and legal aspects of the renewed Dutch innovation box.
The event was a great success, and lead to highly interactive discussions on various technical and political topics.
Here some take-aways:
- The Patent as additional entry ticket for the large MNE lead to some interesting discussions on how to fulfill this legal requirement through all sorts of possible legal alternatives, which seem possible. Here the contribution of Alfred Meijboom of Kennedy van der Laan was highly interesting and lead to some valuable new insights about the possibility to create and maintain legal entry tickets
- For the application of the Dutch innovation box, the appropriate and realistic aggregation level for the determination of the results eligible for the innovation box needs to be determined. Here the taxpayer has some freedom to determine the aggregation level.
- Innovation can be far broader then the specific Research and development department. The innovation can take place in the entire value chain of a company and therefore it makes sense to perform a value chain analyses also for the innovation box.
- The new legislation on the Dutch innovation box states that for the application of the modified nexus approach, the qualified expenditures should be taken into account. This lead to an interesting discussion on the difference between expenditure and costs.
- If a Dutch company performs R&D activities through a branch the restriction of the modified nexus approach seems not applicable. There were some discussions on the WBSO entry ticket and the new draft guidance on BEPS Action 7 on the permanent establishments. Furthermore questions were posed to which extent the WBSO covers R&D activities & income of the branch itself. Through the combination of international tax, transfer pricing and legal we had interesting discussions, which lead to some highly interesting and valuable insights.
If you are interested in the presentations of our roundtable or would be interested in a face to face meeting please let us know.