On 16 November 2023, the European Court of Justice issued two rulings, which showed that the conditions imposed by the Netherlands on outgoing value transfers within the European Union are too strict. On 22 December 2023, the State Secretary for Finance, Taxation and Tax Administration, also on behalf of the Minister for Poverty Policy, Participation and Pensions, informed the House of Representatives about the content, impact and follow-up of the judgements.
Explanation of the impact of the rulings
The Deputy Minister indicates, among other things, that the rulings will have immediate effect from 16 November 2023 and that the Tax and Customs Administration will respect them from that day. Specifically, it has been indicated that the following conditions may no longer be imposed:
- that the surrender possibilities in the other country may not be broader than the surrender possibilities under the Pensions Act and the attaching tax consequences to non-compliance with this condition; and
- that the foreign receiving pension provider must enter into an agreement with the Tax and Customs Administration in which the foreign pension provider accepts liability for the tax and revision interest owed by the entitled employee in respect of taxable events relating to the transferred pension or that the employee provides security.
The rulings only apply to value transfers from the Netherlands to countries in the European Economic Area (all member states of the European Union plus Liechtenstein, Norway and Iceland) and to Switzerland. The procedures for value transfers from the Netherlands to other countries outside the EEA will not change. The procedures for value transfers from abroad to the Netherlands will not change either.
Updated manual
The Dutch Pension Federation and the Dutch Association of Insurers have published several Manuals for international value transfers. In anticipation of the implementation of statutory changes, the content of the letter to the House of Representatives has been incorporated into the Manual for individual outgoing international value transfers. A Dutch and an English version is available.
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