Netherlands Finalises Anti-Hybrid Legislation for Dutch Investment Funds

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The government in Netherlands have reportedly issued draft legislation which include anti-hybrid provisions for Dutch funds to become obligated to implement the revised EU Anti-Tax Avoidance Directive (ATAD-2).

The finalised details are almost identical to the provisional consultation document published late last year, requiring Dutch taxpayers to retain documentation on their applications for the anti-hybrid provisions. This explicitly removes the reverse hybrid tax exemption for collective investment vehicles that are commonly subjected to financial regulatory mishaps in the Netherlands.