Dutch fiscal unity with non EU parent
Under current Dutch corporate income tax law Dutch sister companies cannot form a fiscal unity when the parent company has its residence outside the EU or European Economic Area. A recent ruling from the Dutch Court of Appeal allowed two Dutch sister companies with a common Israeli parent company to form a fiscal unity.
Dutch – Israeli tax treaty
The Dutch Court of Appeal ruled that the rejection of an appeal from the two Dutch sister companies to form a fiscal unity is in violation with the non-discrimination article in the tax treaty between the Netherlands and Israel. The non-discrimination article prevents that a Dutch subsidiary with an Israeli parent company is treated different from a Dutch subsidiary with a Dutch parent company.
Crowe Peak expects that the Dutch State Secretary of Finance will appeal to the ruling at the Dutch Supreme Court.