Ministry of Finance: Automatic exchange of information to tackle tax evasion

Dijsselbloem, Dutch Minister of Finance signed a declaration on October 29, 2014 in Berlin together with other 51 countries on automatic exchange of tax information. Netherlands will receive from these countries information about possible Dutch taxpayers. Netherlands will also provide information on possible foreign taxpayers.

Dutch financial institutions are going to report information to the tax authorities as they do for FATCA. The administration then passes this information automatically to the countries that have committed to the Common Reporting Standard (CRS).

On the above date, 48 countries have first committed to the exchange of information based on the CRS in September 2017. Three countries also indicated that they are going to start exchanging information basing on CRS by September 2018.

“The Netherlands is at the forefront when it comes to tackling international tax evasion. The CRS is a big step forward at a global level,” said Minister Dijsselbloem.

The statement is signed based on the WABB Convention. The commitments in the CRS to report to the tax authorities are spelled out in national laws and regulations. From September 2017, the Dutch Department of Revenue and the tax authorities of the countries from the leading group will start exchanging financial data exchange basing on the CRS.

The data will be exchanged in 2016. Dutch financial institutions have to identify their customers identify from January 1, 2016, based on the CRS and identify where their customers are residents and where are they therefore subject to tax on their income. Both individuals and companies are identified based on the CRS and possibly reported.