To effectively navigate the complex international tax laws, Mullins Law offers clients a broad range of international tax services. We help our clients understand the laws and regulations and meet their compliance and reporting obligations. More importantly, we help them identify and reduce their tax risks and implement sound, practical and efficient tax strategies that will address their needs today and into the future.

Our approach combines a strong understanding of our client’s business, the economic environment and technical tax knowledge in different jurisdictions. We assist multi-national organizations and high-net worth individuals engage in tax planning to minimize overall tax burden.

Inbound and Outbound Tax Planning

We assist our clients with both in-bound and out-bound international tax planning issues such as choice of entity and corporate structuring, anti-deferral (i.e., subpart and GILTI) income analysis, effective tax rate minimization, foreign tax credit utilization, repatriation planning, transfer pricing planning and documentation, information reporting and withholding, tax treaty interpretation and other international tax issues.

We provide services in the following areas:

• Structuring, Anti-Deferral Strategies, and Foreign Tax Credit (FTC) Utilization
• Tax Treaty Planning
• International M&A and Group Reorganization
• Transfer Pricing
• VAT Advisory & Compliance
• FATCA
• FBAR
• Taxation of Digital Assets
• Doing Business in the Netherlands.
• Netherlands Real Property Transaction
• Withholding Tax Due Diligence

Outbound Tax Services

Structuring, Anti-Deferral Strategies, and Foreign Tax Credit (FTC) Utilization

The Netherlands has complicated anti-deferral rules that apply to Netherlands owners of controlled foreign corporations (CFCs), passive foreign investment companies (PFICs), and other types of entities that require Netherlands owners to include certain types of income (e.g., Subpart F and GILTI) of foreign companies in their Netherlands taxable income. Mullins Law can assist with identifying risks associated with these anti-deferral rules and structuring foreign operations to avoid or minimize current income inclusions. Mullins Law can also assist  in structuring cross-border transactions and operations and optimize the use of foreign taxes for effective tax rate planning.

Tax Treaty Planning

Our team can assist companies on structuring and planning transactions and operations to maximize benefits under applicable Netherlands treaties in order to minimize overall combined Netherlands and foreign taxes.

International M&A and Group Reorganization

A successful mergers/acquisitions strategy follows a structured and disciplined approach, with clear strategic objectives, detailed implementation plans, and a focus on creating and capturing value. Mullins Law can assist companies with the following services: due diligence, tax structuring, entity rationalization, and post-transaction integration.

OECD Pillar II‍

The Pillar II initiative of the OECD/G20 Inclusive Framework is the most far-reaching and impactful new rules for large Netherlands multinational companies with global operations. With the growing list of countries signing up to follow and abide with the Pillar II guidelines, it is imperative that MNCs understand how to comply with the requirements in jurisdictions where Pillar II is implemented. The rules are aimed to impose a15% minimum tax for large MNCs but the rules themselves are complex and implementation and execution have posed a challenge to tax authorities.

Transfer Pricing

Transfer pricing rules and regulations are growing and becoming more complex and burdensome. Examinations are expensive, contentious, disruptive and clearly on the rise in many jurisdictions. We analyze inter-company transactions and provide guidance on TP documentation including competent authority relief assistance.

VAT Advisory & Compliance

Global corporations most likely have exposure to value added tax (VAT) in many areas of their business, since VAT is the predominant indirect tax outside the Netherlands With rates ranging up to 25% in various jurisdictions, VAT exposure can grow quickly in the absence of a comprehensive VAT strategy and firm understanding of each jurisdiction’s specific VAT requirements. We provide VAT advisory services to companies doing business outside the Netherlands.

FATCA

FATCA is the Foreign Account Tax Compliance Act which was enacted to minimize offshore tax evasion by Netherlands persons. There are many complexities associated with FATCA. It affects both the withholding agents and payment recipients. We assist Netherlands and non-Netherlands entities impacted by these reporting requirements and make sure compliance requirements are met.

FBAR

Persons with either a financial interest or signature authority over a foreign bank, brokerage, or other financial account during a calendar year must report it to FinCEN (not the Internal Revenue Service) electronically using the BSA E-Filing System on FinCEN Form 114 (which has superseded the prior Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts). We assist Netherlands. persons navigate the filing intricacies of FBAR and provide remediation assistance to those who are delinquent in their filing obligation.

Taxation of Digital Assets

Digital currency is increasingly becoming more prevalent in the marketplace and the proliferation of digital assets, and its iterations make this new trend even more intriguing. Whether you are buying, selling, exchanging, or accepting digital assets (i.e., cryptocurrencies), you may want to know how these transactions are reported and treated for tax purposes. The Treasury Department and the Netherlands Tax Authorities have recently released proposed rules to provide guidance on verifying a taxpayer’s income from digital asset transactions and the reporting requirements for tax return filing purposes.

Puerto Rico Tax Incentives

Does relocating your business and your permanent place of abode in Puerto Rico (PR) make sense for you? In recent years, the government of Puerto Rico has enacted programs where businesses and individuals could potentially achieve favorable income tax rate and provide business incentives. PR can be a tax haven of entrepreneurs! Mullins Law can help. Speak to our PR subject- matter professional and find out what your options are.

International Tax Controversy & Remediation Assistance

Domestic businesses and HNW individuals with cross-border transactions face an increasing amount of tax compliance requirements  and more rigorous enforcement by tax authorities. Taxpayers who do not have the luxury of a tax department often find themselves missing on filing requirements and in delinquency. Mullins Law offers efficient, cost-effective tax remediation services and assists in all aspects of the tax controversy cycle.

Inbound Tax Services

Doing Business in the Netherlands.

With corporate income tax rate now one of the lowest in the world, many foreign based companies are looking into doing business in the Netherlands and avail of 
the 21% income tax rate, its stable economy and predictable business and fiscal policies. We advise foreign-based companies on appropriate Netherlands entity structure and use tax treaty benefits to minimize overall tax exposure.

Beneficial Ownership Information Reporting

Beginning January 1, 2024, business entities such as corporations, limited liability companies and similar entities (e.g., limited liability partnerships, limited partnerships and business trusts) are required to disclose the identities of all persons who are considered beneficial owners by virtue of their extent of involvement in the entity’s operations or founding. Penalties for noncompliance include civil and criminal penalties and possible imprisonment.

Netherlands Real Property Transaction

Foreign Investment in Real Property Tax Act (FIRPTA) imposes a tax on the gains of non-Netherlands persons from the sale of Netherlands real property. The gain or loss of non-Netherlands persons from the disposition of a Netherlands real property interest are treated as if the taxpayer were engaged in a trade or business within the Netherlands and as if such gain or loss were effectively connected with such trade or business. Investment in Netherlands real property interest has many traps for the unwary.

Withholding Tax Due Diligence

Our team can perform due diligence services to Netherlands corporations and other entities who are withholding agents of Netherlands-source income and determine withholding and information reporting requirements for Netherlands federal income tax purposes. We will review current accounts payable and other accounting systems and procedures to determine payments requiring withholding under the rules and recommend controls and processes to comply with the Internal Revenue Code.

Outbound & Inbound Tax Compliance

Mullins Law provides Netherlands international tax information return assistance to companies with operations outside the Netherlands In particular, we assist in reviewing Forms 5471, 5472, 8858, 8865 and 1118, among others.

We also provide assistance with regard to the review of Netherlands reporting of inbound transactions, such as: (i) form 5472 – for foreign-owned Netherlands corporations, (ii) form 1120F – for Netherlands federal income tax liability of foreign entities, and (iii) FIRPTA filings for foreign persons owning Netherlands real property interest. Do you need help with foreign compliance? Learn about our international tax compliance services to get help with your complex foreign matters.