The Dutch government has introduced a bank tax on the banking sector aimed at recovering the money lent as financial support to the banks during the financial crisis. This bank tax took effect as of October 1, 2012.
The bank tax is levied on entities authorized to conduct banking activities in the Netherlands. To read more about the Dutch bank tax, please click here.
Dutch banks with activities in the United Kingdom and British banks with activities in the Netherlands do not have to worry that they will have to pay bank tax in both countries. Mr. Weekers, the Dutch Deputy Minister of Finance, and his British counterpart Mr. David Gauke, have signed a Treaty for the Avoidance of Double Charging of Bank Levies. The treaty grants the right to tax to the country in which the parent company or the head office is resident as this is the country that runs the systemic risk. The other country then gives up this right. This means that assets included in a consolidation will only be taxed once. Without the treaty, these balance sheets items could be taxed twice. This is the first treaty for the avoidance of double charging of bank levies that the Netherlands has concluded since the bank tax took effect on October 1, 2012.
If you would like to receive more information about the Dutch bank tax, please contact your own advisor at KPMG Meijburg & Co or one of the members of the Financial Services group.