Permanent Establishment in the Netherlands

Permanent Establishment in the Netherlands Explained

A permanent establishment in the Netherlands refers to a business presence that creates a taxable nexus for a company without incorporating a local legal entity. In practical terms, it means a foreign enterprise can be taxed in the Netherlands even if it does not register a Dutch corporation, provided it has a sufficiently fixed place of business or economic presence in the country. 

This Permanent Establishment (PE) exposes the company to tax on profits attributed to that presence, as well as obligations under Value-Added Tax (VAT), Goods and Services Tax (GST), payroll tax, and other compliance rules applicable to locally operating enterprises. 

Key Takeaways:

• A Permanent establishment in the Netherlands creates taxable presence without incorporation, exposing foreign companies to corporate income tax and compliance obligations.
• Permanent establishment risk in the Netherlands often arises unintentionally through employees, contract authority, warehousing, construction projects, or recurring executive presence.
• Permanent establishment tax in the Netherlands applies only to attributable profits, requiring arm’s length allocation and robust transfer pricing documentation.
• No formal permanent establishment certificate in the Netherlands exists; registration, bookkeeping, VAT, payroll, and reporting obligations arise once taxable presence exists.
• Incorporating a Dutch B.V. often provides stronger liability protection, clearer tax certainty, and scalable compliance compared to operating through a branch.

Why Permanent Establishment Matters for Foreign Companies?

Even without incorporating a Dutch entity, operational activity can create a taxable presence that carries financial exposure, regulatory obligations, and reputational risk. Because Dutch tax authorities assess substance over form, a Netherlands PE can arise based on actual business activities rather than formal registration status.

• Corporate Income Tax Liability: If a PE exists, profits attributable to Dutch activities are subject to PE tax under the Dutch Corporate Income Tax Act.
• VAT Registration and Reporting: Businesses that are considered established in the Netherlands for VAT purposes may need to register and file periodic VAT returns.
• Payroll Tax Withholding Obligations: If employees work in the Netherlands and the company has a PE, it may be required to act as a Dutch payroll withholding agent.
• Accounting, Filing, and Recordkeeping Requirements: A PE must maintain proper accounting records and comply with Dutch tax filing requirements.

What begins as a commercial opportunity can quickly evolve into a tax and reporting obligation. Proactively evaluating PE rules is essential to avoid unexpected liabilities and ensure alignment with Dutch regulatory expectations.

Legal Framework Governing Permanent Establishment in the Netherlands

To properly assess a PE in the Netherlands, foreign companies must understand both domestic tax legislation and the influence of international tax treaties. Dutch law provides the statutory basis for taxing foreign enterprises, while tax treaties, largely aligned with Organisation for Economic Co-operation and Development (OECD) standards, may modify how a Netherlands permanent establishment is determined and taxed.

1. Domestic Corporate Income Tax Law

Under the Dutch Corporate Income Tax Act 1969 (Wet op de vennootschapsbelasting 1969), non-resident companies are subject to Corporate Income Tax (CIT) if they derive profits from a business carried on in the Netherlands through a PE.

The Act provides that foreign entities are taxed on Dutch-source profits, including income attributable to a PE. 

2. Permanent Establishment Under Dutch Practice

Although Dutch legislation does not always contain a standalone, exhaustive statutory definition, the Netherlands applies principles consistent with Article 5 of the OECD Model Tax Convention. A PE generally involves a fixed place of business through which the business of the enterprise is wholly or partly carried on with a certain degree of permanence. This interpretation directly affects how PE criteria are assessed.

3. Alignment with the OECD Model Tax Convention

Because most Dutch tax treaties are based on the OECD Model, the definition of a foreign PE under a treaty may override or refine domestic interpretation. This alignment is central to understanding permanent establishment rules in the Netherlands in cross-border situations.

4. Role of the Dutch Tax Authority

The authority responsible for enforcing PE obligations is the Dutch Tax and Customs Administration (Belastingdienst). It oversees:

• CIT assessments
• VAT registration and compliance
• Payroll tax enforcement
• Audits and profit attribution reviews

This authority evaluates whether activities conducted by a foreign enterprise create PE risk, including during audits or tax registration reviews.

5. Domestic Law vs. Tax Treaty Application

A key distinction must be made between domestic law and treaty protection:

• Domestic law allows the Netherlands to tax Dutch-source profits derived by foreign enterprises operating through a PE.
• Tax treaties may limit or refine that taxing right, especially regarding:
  • Construction project duration thresholds
  • Dependent agent rules
  • Profit attribution principles

If no tax treaty applies, domestic rules govern fully. If a treaty exists, its definition of PE generally prevails where more restrictive.

Additionally, Dutch law includes mechanisms such as the foreign permanent establishment exemption for Dutch-resident companies operating abroad, ensuring that foreign PE profits may be exempt under certain conditions.

Types of Permanent Establishment Recognized in the Netherlands

When evaluating a PE, foreign companies must understand that multiple forms of taxable presence are recognized under Dutch practice and applicable tax treaties. Below are the primary types of PE that may arise in the Netherlands:

1. Fixed Place Permanent Establishment

A fixed place PE exists when a foreign enterprise has a physical location in the Netherlands through which business activities are wholly or partly carried out with sufficient permanence.

Common examples include:

• A sales office in Amsterdam
• A factory or production facility
• A workshop or branch office
• A warehouse used for core commercial activities

If such a presence exists, profits attributable to that location may be subject to PE tax under the Dutch Corporate Income Tax Act.

2. Dependent Agent Permanent Establishment

A dependent agent PE may arise when a person or entity in the Netherlands habitually concludes contracts on behalf of a foreign enterprise or plays a principal role in contract conclusion.

Practical examples include:

• A local sales representative who signs contracts for the foreign company
• A Dutch-based agent negotiating binding agreements
• A representative with authority to secure orders that are routinely approved

3. Construction or Installation Permanent Establishment

A construction or installation site can constitute a PE if it lasts longer than the duration specified in the applicable tax treaty.

Examples include:

• A long-term infrastructure project
• Installation of industrial machinery
• Ongoing building or engineering projects

Foreign contractors operating project sites should carefully assess treaty thresholds, as exceeding them may create a foreign PE.

Permanent Establishment Criteria in the Netherlands

Understanding the permanent establishment criteria in the Netherlands is essential for foreign companies expanding into the Dutch market. The determination is based on substance and factual business activity, not just registration status. 

Below is a structured breakdown of the key criteria.

1. Fixed Place of Business Test

A fundamental element of a PE is the existence of a fixed place of business through which activities are carried out.

This requires:

• A physical location in the Netherlands
• Business activities are conducted from that location
• The place is not purely preparatory or auxiliary

If the Dutch site is integral to revenue-generating activity, PE tax may apply to profits attributable to that location.

2. Permanence Requirement

The business presence must show a degree of permanence. Temporary or short-term presence may not qualify unless treaty thresholds are exceeded. The OECD standard, applied in Dutch treaty interpretation, requires sufficient duration and stability. Construction projects typically follow treaty-specific duration thresholds (often 12 months). Exceeding the threshold can create a foreign PE.

3. Disposal Test (Right of Use)

For a fixed place PE to exist, the enterprise must have the place at its disposal. This means the company has control over and the right to use the premises for its business activities. This test is often central to assessing PE risk during early-stage expansion.

4. Authority to Conclude Contracts (Agency Test)

A PE may arise even without a fixed office if a person in the Netherlands:

• Habitually concludes contracts on behalf of the foreign enterprise, or
• Plays the principal role leading to the contract conclusion

If this authority exists, a PE may be triggered despite the absence of owned premises.

Common Triggers of Permanent Establishment Risk in the Netherlands

Assessing permanent establishment risk in the Netherlands is particularly important during early market expansion. Many foreign companies unintentionally create a PE. Dutch tax analysis focuses on substance, authority, and economic presence rather than corporate form.

Below are the most common operational triggers that increase PE risk:

• Hiring Local Sales Employees: Expanding companies often hire a Dutch-based sales representative to build market presence. However, risk escalates if that employee:
  • Negotiates key commercial terms
  • Habitually concludes contracts
  • Secures orders routinely approved without material modification
• Granting Contract Authority to Local Personnel: PE exposure increases significantly when individuals in the Netherlands have the authority to legally bind the foreign enterprise. Under OECD-aligned interpretation, a dependent agent who habitually concludes contracts may create a taxable presence even without office space.
• Storing Inventory for Core Business Operations: Maintaining inventory in the Netherlands does not automatically create a PE. However, risk arises when warehousing is linked to core revenue-generating activities rather than merely preparatory or auxiliary functions. 
• Recurring Executive or Management Presence: Repeated or long-term presence of senior executives in the Netherlands can contribute to PE risk, particularly if strategic decisions or contract negotiations occur locally.

Does Remote Work Create a Permanent Establishment in the Netherlands?

As remote-first models expand, many companies are reassessing whether having employees working from home can create a PE in the Netherlands. Below are the key considerations when assessing remote work exposure.

1. The “At Disposal” Principle

A home office may contribute to a PE if it is considered at the disposal of the employer. This means the company effectively has the right to use the location as part of its business operations.

A home office can constitute a fixed place PE where:

• The employee regularly works from that location
• The arrangement is continuous (not temporary)
• The employer requires or effectively mandates remote work from that location

2. Employer Control and Business Substance

The Dutch approach focuses on substance over form. Even if contracts state that no Dutch establishment exists, tax authorities examine:

• Whether the company directs business activities from the Netherlands
• Whether contracts are negotiated or concluded locally
• Whether management decisions occur from the Dutch location

If a remote employee habitually concludes contracts or plays the principal role in securing agreements, this may create a dependent agent PE, even without leased office space.

3. Core vs. Preparatory Activities

Not all remote work creates PE exposure. The activity must go beyond preparatory or auxiliary functions.

Lower-risk roles:

• Internal administrative support
• Back-office processing
• Limited marketing research

Higher-risk roles:

• Revenue-generating sales
• Strategic management decision-making
• Client-facing service delivery

If the Dutch-based remote worker performs core commercial activities, profits attributable to that presence may become subject to PE tax.

Permanent Establishment Tax in the Netherlands

Understanding permanent establishment tax in the Netherlands is essential once a taxable presence is triggered. When a PE exists, the foreign company becomes subject to Dutch taxation on the profits attributable to that establishment. 

1. Corporate Income Tax Rates

The Netherlands applies progressive CIT rates:

• 19% on taxable profits up to €200,000
• 25.8% on taxable profits exceeding €200,000

These rates apply to profits attributable to a PE.

2. Profit Attribution on an Arm’s Length Basis

Profit allocation to a PE follows the arm’s length principle, meaning the PE is treated as if it were a separate and independent enterprise performing its functions under comparable market conditions.

This requires analyzing:

• Functions performed in the Netherlands
• Assets used locally
• Risks assumed by the Dutch operations

Improper allocation can increase PE risk, especially during audits.

3. VAT Registration and Compliance

In addition to CIT, a PE may create VAT obligations. If the PE performs taxable supplies in the Netherlands, it may need to:

• Register for VAT
• Charge Dutch VAT on supplies
• File periodic VAT returns

VAT exposure often arises in logistics, SaaS, manufacturing, and consulting models where services or goods are supplied locally.

Foreign Permanent Establishment and Double Tax Treaties

When cross-border business activity is involved, the treatment of a foreign PE depends on Dutch domestic law and on applicable double tax treaties. The Netherlands maintains an extensive treaty network designed to prevent double taxation and provide clarity on taxing rights between countries.

Understanding how treaties interact with domestic law is essential when assessing exposure related to a PE in the Netherlands or abroad.

1. Role of Double Tax Treaties

Double tax treaties allocate taxing rights between two countries and typically define when a PE exists. Treaties generally:

• Define what constitutes a PE
• Allocate taxing rights over business profits
• Establish mechanisms to eliminate double taxation

This framework is central to determining whether a PE exists in treaty situations.

2. Treaty Override vs. Domestic Law

Under Dutch practice, domestic CIT law grants the Netherlands the right to tax Dutch-source profits derived through a PE. However, where a tax treaty applies, treaty provisions generally prevail if they are more restrictive than domestic law. 

This means:

• If domestic law would consider a PE to exist but the treaty definition is narrower, the treaty limits Dutch taxing rights.
• If no treaty applies, domestic law governs fully.

This distinction is particularly important when evaluating PE criteria for multinational enterprises operating under treaty protection.

3. Foreign Permanent Establishment Exemption

For Dutch-resident companies operating abroad, the Netherlands applies the foreign permanent establishment exemption. Under this regime, profits attributable to a foreign PE are generally exempt from Dutch CIT to prevent double taxation.

This means that if a Dutch company creates a PE in another country, those foreign profits may be excluded from the Dutch tax base, subject to anti-abuse and specific conditions.

Permanent Establishment Certificate in the Netherlands

There is no permanent establishment certificate in the Netherlands as a standard document. Instead, recognition of a PE occurs through tax registration and compliance procedures with the Belastingdienst.

Tax Registration Requirement

If a PE exists, the foreign company must register with the Dutch Tax Administration for:

• CIT
• VAT (if taxable supplies are made)
• Payroll tax (if employees are present)

Failure to register despite meeting PE criteria can increase compliance exposure and audit risk.

Dutch Tax Identification Number (RSIN)

Once registered, the foreign entity operating through a PE receives a Rechtspersonen en Samenwerkingsverbanden Informatienummer (RSIN), which is a Dutch tax identification number for corporate tax purposes. This number serves as official recognition for tax filing and reporting.

Permanent Establishment Checklist for Foreign Companies

Before expanding operations, foreign businesses should apply a structured permanent establishment checklist to evaluate exposure. Below is a practical compliance checklist designed for foreign companies entering the Dutch market.

1. Assess Physical Presence in the Netherlands

Determine whether the company has a fixed place of business in the Netherlands. This includes:

• Office space, coworking space, or leased premises
• Warehouses used for core operations
• Production or assembly facilities

If the location is at the company’s disposal and used for core business activities, it may meet PE criteria.

2. Review Employee Authority and Roles

Examine whether personnel in the Netherlands:

• Habitually conclude contracts
• Negotiate key commercial terms
• Secure orders routinely approved by headquarters

Dependent agent activity can create PE risk, even without formal office space.

3. Analyze Contracting Practices

Evaluate how contracts are negotiated and finalized.

• Where are agreements effectively concluded?
• Who has legal authority to bind the company?
• Are Dutch-based representatives playing the principal role in contract formation?

Substance-based review is critical under PE rules.

4. Check Applicable Tax Treaty Thresholds

If a tax treaty applies, review:

• Does the treaty include a construction PE threshold (often 12 months)?
• Does it include a service PE provision based on days of presence?

Treaty provisions may override domestic law where more restrictive.

Compliance Obligations After Creating a PE in the Netherlands

Once a PE is created, the foreign company assumes ongoing administrative and tax compliance responsibilities, such as:

• Tax Registration: Immediately upon meeting PE criteria, the foreign company must register with the Belastingdienst. This may include registration for:
  • CIT
  • VAT (if taxable supplies are made)
  • Payroll tax (if employees are hired)
• Periodic Corporate Tax Filings: A PE must file an annual CIT return reporting profits attributable to Dutch activities. CIT returns are generally filed electronically. Tax applies only to profits attributable to the PE, not to worldwide income.
• VAT Registration and Returns: If the PE supplies taxable goods or services in the Netherlands, it must:
  • Register for VAT
  • Issue VAT-compliant invoices
  • File periodic VAT returns (usually quarterly or monthly)
  • Submit intra-Community reporting where applicable
• Bookkeeping and Recordkeeping Standards: Dutch tax law requires businesses to maintain proper accounting records. Companies must:
  • Keep reliable financial administration
  • Retain records for at least 7 years
  • Ensure documentation supports profit attribution

For a foreign PE, maintaining separate accounting records for Dutch activities is strongly recommended to support arm’s length profit allocation.

How to Avoid Unintended Permanent Establishment in the Netherlands?

Avoiding unintended creation of a PE requires careful structuring and continuous monitoring. The goal is not aggressive tax avoidance, but responsible compliance planning. Below are practical measures companies can implement to reduce PE risk.

1. Use Independent Distributors Where Appropriate

One way to reduce exposure is to engage truly independent distributors operating in the ordinary course of their own business.

To support independence:

• Ensure the distributor bears its own commercial risk
• Avoid granting exclusive or economically dependent arrangements
• Allow the distributor to act for multiple clients

Substance must reflect independence, not merely contractual wording.

2. Limit Contract Authority in the Netherlands

A common trigger of a foreign PE is granting local personnel authority to conclude contracts.

To reduce risk:

• Centralize contract approval outside the Netherlands
• Ensure Dutch-based employees do not habitually conclude binding agreements
• Avoid granting signing authority to local representatives

Where local staff engage in marketing or lead generation only, documentation should clearly reflect that contracts are finalized abroad.

3. Centralize Sales and Strategic Decision-Making

Sales negotiation and strategic management functions often determine PE exposure.

Companies can mitigate risk by:

• Conducting final price approvals and commercial decisions at headquarters
• Maintaining clear documentation showing where decisions are made
• Avoiding Dutch-based executive control over global operations

Because PE criteria focus on substance and economic reality, board minutes, approval workflows, and internal policies should align with operational practice.

4. Properly Document Intercompany Arrangements

If Dutch-based personnel perform limited support functions, intercompany agreements should clearly define:

• Scope of services
• Functional responsibilities
• Risk allocation
• Compensation on an arm’s length basis

Transfer pricing documentation supporting these arrangements reduces disputes over PE tax.

Penalties for Non-Compliance

Failing to properly assess and register a PE can expose foreign companies to significant financial, operational, and reputational risk. Below are the key penalty areas companies should understand.

1. Retroactive Tax Assessments

If a tax authority determines that a PE existed in prior years but was not declared:

• CIT may be assessed retroactively.
• Assessments typically cover multiple open tax years.
• Profits will be attributed to the PE on an arm’s length basis.
• VAT/GST liabilities may also be assessed if taxable supplies were made locally.

In many cases, the authority reconstructs taxable income using indirect methods if documentation is incomplete.

2. Interest on Late Payment

In addition to back taxes:

• Statutory interest accrues from the original due date.
• Interest is usually non-deductible.
• Compounded interest may significantly increase exposure over multiple years.

Even where penalties are mitigated, interest is rarely waived.

3. Administrative and Monetary Penalties

Tax authorities may impose:

• Fixed penalties for failure to register
• Percentage-based penalties on unpaid tax
• Late filing penalties for corporate tax returns
• VAT non-compliance fines
• Payroll reporting penalties if employees were engaged locally

Penalty percentages can range from moderate to severe, especially where authorities view the omission as negligent rather than accidental.

4. Transfer Pricing Adjustments

If a PE is identified, the tax authority may:

• Reallocate profits using transfer pricing principles
• Challenge cost allocations between head office and PE
• Apply penalties for missing or insufficient transfer pricing documentation
• Increase taxable income beyond what the company initially calculated

This can create secondary exposure in the home jurisdiction if corresponding adjustments are not granted.

When to Incorporate Instead of Operating Through a PE in the Netherlands?

For foreign companies expanding into the Dutch market, operating through a PE in the Netherlands can be an efficient initial entry model. However, as activities scale, incorporating a Dutch subsidiary often provides greater certainty, liability protection, and operational flexibility.

Below is a structured comparison to help determine when incorporation may be the more appropriate long-term strategy.

Managing Direct Tax and PE Risk Globally with Commenda

As companies expand across borders, managing direct tax exposure and monitoring PE risk quickly becomes complex. What often begins as a single market entry can evolve into multi-country operations with varying PE rules, treaty thresholds, and compliance timelines.

Commenda provides a centralized infrastructure to help enterprises manage this complexity with clarity and control.

• Centralized Visibility Across Jurisdictions: Commenda enables:
  • Consolidated oversight of PE exposure alongside other jurisdictions
  • Structured tracking of activities that may trigger a foreign PE
  • Monitoring of employee presence, contract authority, warehousing, and long-term project thresholds
• Direct Tax Management at Enterprise Scale: Commenda supports:
  • CIT compliance for branches and subsidiaries
  • Monitoring of PE tax in the Netherlands and other countries
  • Profit attribution oversight aligned with OECD arm’s length principles
• Proactive PE Monitoring Framework: Many organizations discover PE exposure retroactively. Commenda is designed to prevent that. The platform supports a structured PE checklist across markets, including:
  • Employee hiring and contract authority review
  • Construction and installation duration tracking
  • Local inventory and warehousing monitoring

By centralizing direct tax management and PE oversight, Commenda enables enterprises to scale internationally while maintaining control over structural, tax, and regulatory risk, including exposure under evolving PE criteria and comparable global standards. 

Book a demo today to get started. 

FAQs

1. What activities create a permanent establishment in the Netherlands?

A Netherlands permanent establishment generally arises when a foreign company has a fixed place of business through which it carries on activities in the Netherlands.

Common triggering activities include:

• Maintaining an office, branch, factory, or workshop
• Operating a warehouse beyond preparatory or auxiliary use
• Running a construction or installation project exceeding treaty duration thresholds
• Using a dependent agent with authority to conclude contracts

2. Can a single employee create a permanent establishment in the Netherlands?

Yes, in certain circumstances. A single employee may create permanent establishment risk in the Netherlands if:

• The employee has authority to conclude contracts on behalf of the foreign company
• The employee habitually exercises that authority
• The home or office is considered “at the disposal” of the employer

3. Does storing inventory in a third-party warehouse create a permanent establishment in the Netherlands?

It depends on the nature of the activity. Under updated OECD standards (post-BEPS), warehousing may create a PE if it is not merely preparatory or auxiliary.

Risk increases where:

• Inventory is regularly delivered to Dutch customers
• The warehouse supports core revenue-generating operations

4. How long can a foreign company operate in the Netherlands before triggering permanent establishment status?

There is no universal time threshold for all activities. However:

• Construction or installation projects commonly trigger PE status after 12 months (subject to treaty variations).
• Short-term business travel alone does not automatically create PE.

Treaty-specific duration rules apply under bilateral tax treaties.

5. Is a subsidiary safer than operating through a permanent establishment in the Netherlands?

From a liability and certainty perspective, yes. A subsidiary (Dutch B.V.):

• Is a separate legal entity
• Limits parent liability
• Provides a clearer tax registration and compliance framework

6. Can independent contractors create permanent establishment risk in the Netherlands?

Generally, independent contractors do not create PE if they are legally and economically independent. However, risk arises where:

• The contractor acts exclusively or almost exclusively for one foreign company
• The contractor effectively acts as a dependent agent

7. What records must be maintained for permanent establishment tax compliance in the Netherlands?

Once permanent establishment tax in the Netherlands applies, companies must maintain:

• Accurate bookkeeping records
• Documentation supporting profit attribution
• Transfer pricing documentation (if applicable)
• VAT and payroll records were relevant

Dutch administrative requirements are governed by Article 52 of the State Taxes Act (AWR).

8. How do tax authorities in the Netherlands detect unregistered permanent establishments?

The Dutch Tax Administration (Belastingdienst) uses:

• Payroll registration data
• VAT filings
• Exchange of information under the EU and OECD frameworks
• Banking and financial reporting
• International tax transparency mechanisms

9. Can digital businesses or SaaS companies create a permanent establishment without a physical office in the Netherlands?

Yes, under certain conditions. A digital business may create PE if:

• A dependent agent habitually concludes contracts in the Netherlands
• A fixed server is at the disposal of the enterprise (rare in cloud models)
• Significant on-the-ground commercial substance exists

10. What happens if a permanent establishment is identified retroactively in the Netherlands?

If a foreign permanent establishment is identified after the fact:

• Retroactive corporate income tax assessments may apply
• Interest on unpaid tax is imposed
• Administrative penalties may be levied
• Transfer pricing adjustments may be required

11. How does a permanent establishment in the Netherlands impact global profit allocation and transfer pricing policies?

A PE requires profits to be attributed under the arm’s length principle. This means:

• Functions, assets, and risks must be analyzed
• Intercompany pricing must reflect economic reality
• Documentation requirements apply under OECD Transfer Pricing Guidelines

12. Can cross-border intercompany services trigger permanent establishment exposure in the Netherlands?

Yes, depending on substance. Service PE exposure may arise under certain tax treaties if:

• Employees perform services in the Netherlands for extended periods
• The duration threshold in the applicable treaty is exceeded

Treaty language determines applicability.

13. How does permanent establishment status in the Netherlands affect tax treaty benefits and withholding tax relief?

PE status may:

• Allocate taxing rights to the Netherlands
• Affect eligibility for treaty-based withholding reductions
• Require profit attribution before treaty relief is applied

14. What restructuring options are available if an international business unintentionally creates a permanent establishment in the Netherlands?

If PE exposure is identified, companies may consider:

• Voluntary disclosure to mitigate penalties
• Incorporating a Dutch subsidiary
• Adjusting contract authority structures
• Revising transfer pricing policies
• Restructuring operational substance

Corrective action should be carefully assessed to comply with Dutch anti-abuse standards.