What Does The New Approach Of Horizontal Tax Monitoring Mean For Your Company

Author:Mr Joost Van Helvoirt
Profession:Loyens & Loeff

The Dutch Tax Authorities will introduce a new approach to Horizontal Tax Monitoring ('HTM') from 2020 onwards. The HTM method, a form of cooperative tax compliance applied in the Netherlands, will be tightened. Further, HTM will be limited to large companies.

New approach to HTM


The 2020 Annual Plan of the Dutch tax authorities states that the changes will improve compliance with tax rules. The new approach follows the review of HTM. The following large companies are distinguished in the new HTM approach:

One hundred largest companies The current HTM agreements concluded by the Dutch tax authorities with the hundred largest and most complex companies will be terminated. An individual tax monitoring plan will replace these HTM agreements. Medium-sized companies according to Dutch accounting law The medium-sized companies according to Dutch accounting law can conclude an HTM agreement under stricter requirements and for a limited duration of three years. Other large companies The other large companies can only participate in HTM through their tax adviser. Companies that already have an HTM-agreement in place, will be assessed as to whether and how they qualify for HTM via their tax adviser. Consequences for your company

The tax authorities will discuss the exact changes of HTM with companies in the coming period. The changes will in most cases lead to stricter requirements for HTM. In The involvement of external tax advisors will be taken into account.

In need of assistance?

Loyens & Loeff has a Tax Assurance team. Our experts have extensive experience in entering into, applying and improving HTM. As well as in controlling of and observing applicable tax rules.

Our experts will guide you in setting up, testing and improving your Tax Control Framework ('TCF'). A TCF contains a company's fiscal processes, risks and mitigation measures (controls. A TCF is not restricted to HTM situations and is therefore recommended for every...

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