\"...in een of meer in datzelfde jaar gevoegde maatschappijen ...\"
English translation: companies included in a fiscal entity
| GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW) | ||||||
|---|---|---|---|---|---|---|
|
| 08:55 Mar 20, 2017 |
|
| Dutch to English translations [PRO] Bus/Financial - Law: Taxation & Customs | |||||||
|---|---|---|---|---|---|---|---|
|
| ||||||
|  Selected response from: Kitty Brussaard Netherlands Local time: 08:49 | ||||||
Grading comment
| |||||||
| Summary of answers provided | ||||
|---|---|---|---|---|
| 3 | companies included in a fiscal entity |
|
| Summary of reference entries provided | |||
|---|---|---|---|
| Some useful terms that are often confused. |
|
| Discussion entries: 5 | |
|---|---|
Answers
58 mins confidence: 
| gevoegde maatschappijen companies included in a fiscal entity Explanation: More context would definitely be helpful but this fragment seems to be related to (and perhaps even literally quoted from) art. 15ad of the Wet op de vennootschapsbelasting 1969. See http://wetten.overheid.nl/BWBR0002672/2017-01-01. If this is indeed the context, 'gevoegd' means so much as 'deel uitmakend van een fiscale eenheid', 'opgenomen in een fiscale eenheid' (i.e. for corporate income tax and VAT purposes). -------------------------------------------------- Note added at 2 hrs (2017-03-20 11:04:39 GMT) -------------------------------------------------- For further information on how all this relates to the 'bovenmatig deel aan overnameschulden' referred to in your source text, see for instance: Acquisitions will be considered to be financed with excessive debt if the acquisition debt amounts to more than 60% of the acquisition price of the target company at the end of the book year in which the target company is included in the fiscal unity. In subsequent book years, the applicable percentage is reduced by 5% per year until 25%. http://www.houthoff.com/uploads/tx_hhnewsletters/Tax_News_Up... The Netherlands government, on 20 September, presented its 2017 Budget including its Tax Plan 2017, proposing significant changes to the taxation of multinational businesses, international investors, and investment funds. Included in Tax Plan 2017 and related legislative proposals (the “Bill”) are measures that would change the dividend withholding tax exemption, the Netherlands innovation box, the anti-base erosion and acquisition debt interest deduction limitations, and the rules on refunds of Dutch dividend withholding tax. (...) The second proposed amended interest deduction limitation is the interest deduction limitation for acquisition debt. This provision disallows the deduction of interest expenses relating to (deemed) excessively leveraged acquisitions if the target is subsequently included in a fiscal unity for corporate income tax purposes or merged with the acquiring company. Whether acquisition debt is excessive is determined based on a loan-to-purchase price ratio. In the year of the acquisition, a maximum loan-to-purchase price ratio of 60 percent is allowed; this maximum percentage is reduced by 5 percentage points annually over the course of seven years, down to 25 percent in year eight and subsequent years. http://mnetax.com/17449-17449 -------------------------------------------------- Note added at 1 day4 hrs (2017-03-21 13:01:59 GMT) -------------------------------------------------- Fiscal unity: general For Dutch corporate income tax purposes, a Dutch parent company can upon request consolidate a Dutch subsidiary in which it holds an equity interest of at least 95% (fiscal unity). As a result of such fiscal unity, provided the existing anti base erosion and thin cap restrictions do not apply, interest paid or accrued on debt attracted by the Dutch acquisition company to finance the acquisition of the target company can be deducted from the taxable profits of such target companies and other subsidiaries included in the fiscal unity. http://www.debrauw.com/wp-content/uploads/NEWS - LEGAL ALERT... Tax items related to 'excessive' acquisition debt Restrictions exist on the deductibility of interest on 'excessive' acquisition debt, including debt owed to third parties. When a Dutch target company is acquired that will be included in a consolidated tax group (fiscal unity) tax regulations exist. This is the case for debt with a Dutch holding company including debt owed to third parties. These rules reduce the effectiveness of tax grouping as a way to deduct interest on acquisition debt from operational profits of the target. This Tax Bill includes, in addition to the existing anti-base erosion and thin cap restrictions, restrictions on the deduction of interest on acquisition debt. Leveraging Dutch acquisition vehicles that form a consolidated tax group (fiscal unity) with the Dutch target company, so that interest on the acquisition debt can be set-off against the Dutch target company's taxable profits are decreased. The existing anti-base erosion and thin cap rules, which effectively apply to intragroup financing only, have been further decreased to curb the leveraging of Dutch target companies. A Dutch parent company can, upon request, include a Dutch subsidiary in a fiscal unity if it holds at least 95% of its nominal share capital. As a result, Dutch CIT is levied as if the Dutch parent company and the Dutch subsidiary were a single taxpayer. Under the current rules, interest on 'excessive' Acquisition Debt can no longer be deducted from the taxable profits attributable to a Dutch target company. http://www.corporatefinanceineurope.eu/netherlands/tax-impli... |
| |
Grading comment
| ||
| Login to enter a peer comment (or grade) | ||
Reference comments
1 hr |
| Reference: Some useful terms that are often confused. Reference information: Gary Kirschenbaum defines these terms beautifully and it is very useful to know the distinction. This is cut and pasted from: https://www.linkedin.com/pulse/confused-terms-subsidiary-aff... 1) Parent Company A business becomes a parent company when it owns another legally separate entity. The parent company establishes ownership by either creating the entity or purchasing the majority of voting shares of stock. It further influences the operation and management of the other entity, which is known as having a ”controlling interest”. A parent company can change its ownership status by purchasing more shares, or by selling some or ultimately all of its shares. The entities that a parent company has controlling interests in are called “subsidiaries”. 2) Subsidiary As stated above, a “subsidiary” is a legal entity that is majority owned by a parent company, i.e. 51% or more of the voting stock. A subsidiary is also sometimes referred to as a “child company”. Wholly-owned subsidiaries are 100% owned by the parent company. A subsidiary can also have controlling interests in its own set of subsidiaries. 3) Sister Company Sister companies are subsidiary companies owned by the same parent company. Each of the sister companies can operate separately and may have no connection other than sharing the same parent company. Sister companies can be quite different from each other, producing different products and selling to completely different markets. For example, as Berkshire Hathaway is the parent of many subsidiary companies, these subsidiaries are then sister companies to one another. Because both subsidiary and sister companies are separate legal entities, it is not always obvious that the companies are subsidiaries of a parent company, let alone the same parent. Furthermore, interaction between the sister companies or subsidiaries is not required and may not take place at all. In fact, in some cases, sister companies may compete against one another in the same market. 4) Affiliate “Affiliates” and “subsidiaries” are both measurements of ownership that a parent company has in other companies. An affiliate has only a minority share of its stock controlled by the parent company. Multinational corporations often set up affiliates under other names to break into the markets of other countries. This is done to protect the parent company’s name in the event that the affiliate does not succeed, or where the name of the parent corporation may not be perceived in a favorable light. 5) Division A division is a part of a business entity. This means that a division, although it can often operate under a different name and have its own financial statements, is still a part of the business entity itself and not separately incorporated. A division is like a hand on the body, whereas a subsidiary is like an offspring. Although parents, subsidiaries, and affiliates can all have several divisions with their own profit centers, they are still under the legal entity to which they belong. -------------------------------------------------- Note added at 1 hr (2017-03-20 10:26:49 GMT) -------------------------------------------------- Taken from my previous discussion entry: For a discussion of "voeging", please see http://wetten.overheid.nl/BWBR0018803/2005-09-26 https://www.linkedin.com/pulse/confused-terms-subsidiary-affiliate-division-others-gary-kirshenbaum |
| |
| Login to enter a peer comment (or grade) | ||
Login or register (free and only takes a few minutes) to participate in this question.
You will also have access to many other tools and opportunities designed for those who have language-related jobs (or are passionate about them). Participation is free and the site has a strict confidentiality policy.
KudoZ™ translation help
The KudoZ network provides a framework for translators and others to assist each other with translations or explanations of terms and short phrases.
See also:
Search millions of term translations