Flynth has been a member of BKR International since the end of 2008. Flynth promote this as enabling them to provide their customers who do business abroad with appropriate assistance across a wide range of issues. Affiliate offices of BKR render them the services that they are also accustomed to receiving from Flynth. In return, Flynth has also gained a considerable number of clients who service the Dutch market from abroad.
The annual tax and audit meeting of BKR International, held in Amsterdam on Monday, 26 November provides a platform for the mutual exchange of knowledge between accountants and tax experts.
The Netherlands as an attractive country for holding companies
Flynth was given the opportunity to give two presentations. Peter Janssen, together with Molade Trust Management, gave an explanation of the tax and civil law aspects of operating a holding company as a private company with limited liability (B.V.) in the Netherlands.
They highlighted the attractiveness of the Netherlands as a country in which to operate a holding company in respect of the following features:
- The Netherlands has the world’s largest network of tax treaties with other countries
- The exemption from corporation tax makes it possible to receive profits from subsidiaries free from tax in the Netherlands
- No tax needs to be paid on interest and royalties paid from the Netherlands
- Security can be requested from the tax authorities in advance with regard to the treatment of certain tax-related matters
Of course, the Netherlands is extremely suitable as a base for European operations, thanks to its location, infrastructure (harbours) and experience in logistical services.
Unique VAT facilities
Hans Maessen (Maco Customs Service) and Rob Zevenbergen (Flynth) made it clear in their presentation that the Netherlands is the only EU country to offer enormous liquidity savings for companies that want to trade with other European countries from a base in the Netherlands.
This is due to the so-called reverse charge mechanism applied to imports. Normally, companies that import goods from countries outside Europe have to pay VAT on the goods when they import them. They get this VAT back from the tax authority, but it can take months to receive the refund.
Dutch VAT legislation is the only one of its kind in Europe to offer the possibility of indicating the import VAT in the VAT declaration and then allowing this VAT to be deducted again as input VAT in the same declaration. In this way, the company receives the goods VAT neutral, which is as it should be.
Cooperation with Maco Customs Service
By acting as a tax representative, Maco Customs Service can request a licence to make use of this reverse charge mechanism for its clients. Acting as a tax representative demands a high degree of expertise and the tax representative is also responsible for deducting the VAT of its clients. In order to offer this service to their clients, Maco and Flynth have reached an in-depth cooperation agreement with each other.
The Netherlands: The gateway to Europe
From the above, we can conclude that the Netherlands is the ideal country for a base of operations for trading with the rest of Europe. The members of BKR International present were impressed by the facilities that the Netherlands has to offer in this area.
In addition to existing clients in the area of import and export, Maco and Flynth want to draw the attention of potential clients to their expertise in this area. The target group covers EU clients with a serious involvement in import and export – however, the cooperation with Maco will also be aimed at clients from non-EU countries who want to do business in the EU.
BKR International offers them the opportunity to demonstrate their knowledge and skills at their regional member conferences in the Americas (North and South America) and the Asia-Pacific (Asia-Australia-New Zealand).
If you would like to talk to us about these items, please contact:
Hans Maessen, Director Maco Customs Service, T:+31 475 425 800 E: firstname.lastname@example.org
Rob Zevenbergen, Chairman VAT Group Flynth, T: +31 610 564 624 E: email@example.com
Peter Janssen, Board Member EMEA Region BKR, T: +31 651 191 738 E: firstname.lastname@example.org