Article 2:408 DCC consolidated reporting exemption

If your Dutch holding company operates within an international group structure. Preparing separate consolidated financial statements in the Netherlands creates unnecessary administrative work, costs and audit procedures.

Under Article 2:408 of the Dutch Civil Code (DCC), qualifying intermediate holdings can be exempted from preparing consolidated financial statements. This statutory relief allows your Dutch entity to present stand-alone financial statements and value its participations at cost. Simplifying your financial reporting process while remaining fully compliant with Dutch requirements.

How we work: tailored to your group structure

Not sure if your Dutch holding structure qualifies for the 408 exemption? You don’t have to figure it out alone.

Applying Article 2:408 DCC requires precise timing, strict legal alignment, and coordination across jurisdictions. Because every corporate structure has unique reporting mechanics, we follow a simple three-step compliance approach:

Step 1: discovery call: We review your international group structure, reporting standards, and global consolidation framework.
Step 2: eligibility & timing scan: We verify EU Directive equivalence, review shareholder consent rules and map out your Dutch Chamber of Commerce (KvK) filing deadlines.
Step 3: turnkey setup: We handle the stand-alone audit, prepare audit-ready technical disclosures and execute the required KvK filings.

Who can benefit from this exemption?

The Article 2:408 exemption is designed for organisations looking to streamline their Dutch financial reporting structure under Dutch GAAP or IFRS:

International groups operating a Dutch intermediate holding company.
Foreign parent companies with active Dutch subsidiaries.
CFOs and financial controllers managing cross-border financial reporting obligations.
Audit teams & finance professionals reviewing local consolidation requirements.

Critical conditions for article 2:408 eligibility

To legally apply the 408 exemption, your intermediate holding company must satisfy five statutory requirements under Dutch corporate reporting law:

No shareholder objection

Shareholders holding at least 10% of the issued capital must not have objected to using the exemption within 6 months after the start of the financial year.

Full group consolidation

The intermediate holding’s financial data must be fully (integrally) consolidated into the financial statements of a higher parent entity.

Equivalent reporting standards

The parent company’s consolidated statements must be prepared in accordance with EU Directive 2013/34/EU or an equivalent international standard (e.g., IFRS).

Approved language

Group accounts must be drawn up in or officially translated into English, Dutch, French or German.

Strict Dutch trade register (KvK) filing

The parent’s consolidated statements, auditor’s report and annual report must be filed at the Dutch Chamber of Commerce (KvK). Within 6 months of year-end (or within 1 month of permitted later publication) or within the statutory filing deadline applicable in the parent company’s jurisdiction.

Risks & timing traps to avoid

Applying Article 2:408 DCC requires synchronization across international group entities:

The filing timing trap: A Dutch intermediate holding can only finalize, adopt and file its stand-alone statements under Section 408. After it is verified that the parent company’s consolidated statements have been properly filed at the Dutch Chamber of Commerce.

Important Exception: If the Dutch entity’s filing deadline falls before the parent company’s statutory deadline in its home jurisdiction. The Dutch entity can still claim the 408 exemption, provided that the parent company’s consolidated financial statements for the preceding financial year have been duly filed at the KvK.

Audit opinion exposure: If the parent group fails to file its consolidated accounts on time, the Dutch entity loses its right to the exemption. Preparing stand-alone accounts without full consolidation under these circumstances. Results in a non-compliant financial report, directly impacting your Dutch auditor’s opinion.

Audit-ready documentation & support services

Navigating Dutch corporate reporting rules within international structures requires specialized audit and technical expertise. We assist your finance team with:

Eligibility assessments: Verifying whether your company meets the 408 exemption criteria, EU directive equivalence and shareholder consent rules.
Structure & requirement reviews: Analyzing your group structure, accounting standards, and consolidation workflows.
Audit-ready documentation: Preparing formal technical memos and supporting documentation for internal board approval and statutory auditors.
Timing & KvK filing coordination: Synchronizing global reporting schedules with Dutch filing deadlines to eliminate audit risks.
Interplay with section 403 guarantees: Structuring the interaction between Section 408 consolidation exemptions and Section 403 parent liability statements.