Aug 22, 2014 11:56

9 yrs ago

4 viewers *

Dutch term

Andre de Vries

United Kingdom

1148 questions

deelnemingsverrekening

Dutch to English Bus/Financial Law: Taxation & Customs

THis is a summary from a book about this subject. I am not really clear whether this is a credit or something else. Any ideas?

De deelnemingsvrijstelling voorkomt dubbele heffing van winstbelasting als een dochtervennootschap de gemaakte winsten uitkeert aan haar Nederlandse moedervennootschap. Deze regeling is van cruciaal belang voor het Nederlandse bedrijfsleven en wordt ook wel aangeduid als een visitekaartje voor het Nederlandse vestigingsklimaat.

Hoewel het vestigingsklimaat gebaat is bij een ruime deelnemingsvrijstelling, moet worden gewaakt voor kapitaalvlucht, zodat een uitzondering op de vrijstelling gerechtvaardigd is voor inkomsten die afkomstig zijn uit laagbelast mobiel kapitaal. Vanaf 1 januari 2007 geldt voor dergelijke inkomsten de deelnemingsverrekening.

In dit onderzoek staat de vraag centraal in hoeverre de toepassingsvoorwaarden en de werking van de deelnemingsverrekening recht doen aan genoemde balans. Hierbij wordt onder meer aandacht besteed aan de effectiviteit en proportionaliteit van de deelnemingsverrekening. Daarnaast komen de consistentie en de uitvoerbaarheid van de regeling aan de orde, evenals de verenigbaarheid met Europees recht.

Proposed translations (English)

4	dividend imputation	LouisV (X)
3	(UK: business) investment relief	Adrian MM. (X)

References

JurLex

Michael Beijer

Change log

Aug 22, 2014 12:25: Rachel Waddington changed "Level" from "Non-PRO" to "PRO"

Votes to reclassify question as PRO/non-PRO:

PRO (3): Maaike van Vlijmen, Michael Beijer, Rachel Waddington

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Discussion

Adrian MM. (X) Aug 23, 2014: 'double taxation offset' Good try. But it's still called double taxation relief (cf. Phil G's last two suggestions) and is bog-standard double taxation terminology.
John Holloway Aug 23, 2014: 'double taxation offset' No idea whether this is the actual term used but it does work in both instances in context. The terms 'offset', 'rebate' and 'double taxation' come up a lot in this context. (As I understand it it is double taxation on dividends or other profit on equity in two related companies that the offset or 'verrekening' would relieve.)
philgoddard Aug 22, 2014: Any of these terms would do "Participation credit" or "participation relief" or "subsidiary relief" would get my vote.
Michael Beijer Aug 22, 2014: @writeaway: True. However, JurLex is more often right than wrong, so that is a risk I am willing to take.
writeaway Aug 22, 2014: @Michael Beijer The trouble with posting Jurlex without actually knowing oneself is that it could be one of those times Jurlex is wrong.
Andre de Vries (asker) Aug 22, 2014: sounds good That looks more like the business.
Michael Beijer Aug 22, 2014: @writeaway: I posted the JurLex Reference comment in case he doesn't own JurLex. Just trying to help. I have no idea what this means myself.
writeaway Aug 22, 2014: references are nice and easily found but it's not supposed to be a 'fishing expedition'. André is looking for someone who actually knows what the right term is and is able to provide an explanation. Fwiw, I don't know either.........
Michael Beijer Aug 22, 2014: and ... ‘participation loss relief facilities’ ‘Amendment to the participation exemption Currently, the participation exemption does not apply to ‘low-taxed portfolio investments’. Instead of the participation exemption (deelnemingsvrijstelling), the participation loss relief facilities (deelnemingsverrekening) will be applicable to such participations. A participation is considered a low-taxed portfolio investment if more than 50% of the assets held directly or indirectly by the participation consists of free portfolio investments (‘asset test’) and the participation is not liable to a tax according to the profit which, in accordance with Dutch standards, results in a tax liability of 10% or more (‘rate test’). An exception exists for the ‘real estate subsidiary’ (vastgoeddeelneming).’ (http://www.loyensloeff.com/en-US/News/Publications/Newslette... )
Michael Beijer Aug 22, 2014: also translated as ‘participation credit’ See e.g.: ‘(iii) is an entity that has an interest in us to which the participation exemption (deelnemingsvrijstelling) or the participation credit (deelnemingsverrekening) is applicable as set out in the Dutch Corporate Income Tax Act 1969; […] (ii) the entity at the time of the distribution has an interest in us to which the participation exemption as meant in article 13 of the Dutch Corporate Income Tax Act 1969 or to which the participation credit as meant in article 13aa of the Dutch Corporate Income Tax Act 1969 (Wet op de vennootschapsbelasting 1969) would have been applicable, had such entity been a tax resident of the Netherlands;’ (http://www.sec.gov/Archives/edgar/data/1563411/0001193125132... )

Proposed translations

13 hrs

LouisV (X)

Australia

381 answers

Native in English

Works in field

Selected

dividend imputation

it obviously varies between countries, and I'm not familiar with the Dutch situation

Reference:

http://en.wikipedia.org/wiki/Dividend_imputation

Peer comment(s):

neutral	Adrian MM. (X) : Good thinking. Iin the UK, ACT > advance corporation tax used to impute the dividend as income tax to the shareholder or, co.-to-co., the dividends recvd. are known as franked investment income http://www.investopedia.com/terms/f/frankedincome.asp 6 hrs
	it is the franked dividends that are used in the imputation process

3 KudoZ points awarded for this answer. Comment: "It has been a while. Thanks"

8 hrs

Adrian MM. (X)

9143 answers

Native in English

Specializes in field

(UK: business) investment relief

Close to Phil G's answer but NB this is an investment profits relief vs. group tax losses relief that can pass horizontally between subsidiaries or vertically between a subsid. and the parent cf. Organschaft in DE.

It matters not that the UK Enterprise Investment Scheme applies to non-doms, namely non-domiciliaries.

Example sentence:

Business Investment Relief was introduced by the Finance Act 2012 and took effect from 6 April 2012. It applies to foreign income and gains for anyone that falls into the category of being a UK resident but is also a Non-UK domiciliary.

Reference:

http://www.hmrc.gov.uk/eis/

http://info.sapphirecapitalpartners.co.uk/blog/bid/216141/Business-Investment-Relief-Explained-a-10-point-summary-guide