INTERNATIONAL TAX PLAZA - The competent authorities of the Netherlands and Iceland have concluded a MoU on the Exchange of Information for Tax Matters

On March 8, 2017 the text of Memorandum of Understanding between the Ministry of Finance and Economic Affairs in Iceland and the Ministry of Finance in the Netherlands regarding the exchange of information in tax matters (Hereafter: the MoU) was published in the Dutch Staatscourant. The MoU was signed by the Dutch competent authorities on February 7, 2017 and by Icelandic competent authorities on February 13, 2017.

Based on Article 7, Paragraph 1 of the MoU (“Coming into effect. Amendments. Termination”), the MoU entered into force on February 13, 2017. Based on Article 7, Paragraph 2, the MoU will be applicable for the first time to information regarding the calendar year 2016.

According to Article 3, Paragraph 1 of the MoU (“Automatic exchange of information”) The competent authorities of Iceland and the Netherlands will automatically provide each other with information – if available – about:

· Immovable property (OECD code 6);

as far as the Netherlands is concerned: ownership and value of immovable property;

as far as Iceland is concerned: income from immovable property;

· Business profits (OECD code 7);

· Dividends (OECD code 10);

· Interest (OECD code 11);

· Income from independent personal services (OECD code 14);

· Income consisting of salaries, wages and other similar remunerations (OECD codes 15);

· Directors’ fees (OECD code 16);

· Income of artists and sportsmen (OECD code 17);

· Income from pensions, annuities, social security benefits and other similar remunerations (OECD codes 18 and 19);

· Payments to students for education and training (OECD code 20);

· Other income (OECD code 21).

The MoU also contains regulations regarding the possibility to have so-called Incidental target group campaigns (Article 4 of the MoU). In this respect it is arranged that the competent authorities can agree by exchange of letters to exchange categories of information, other than the above-mentioned categories, automatically or intensified spontaneously for a certain period.

Furthermore the MoU also contains regulations with respect to The presence of tax officials of one State on the territory of the other State (Article 5 of the MoU).

Click here to be forwarded to the text of the MoU as available on the website of the Dutch Staatscourant.

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