Netherlands Tax Administration Clarifies Treatment of Exit Payments Received by Cooperatives

The Dutch Tax Administration’s Knowledge Group on special corporate tax profit determination has published a position clarifying the corporate income tax treatment of exit payments received by a cooperative from departing members.

The Knowledge Group was asked whether the exit payments received by the cooperative should be treated as capital contributions for corporate income tax purposes. It answered in the negative, concluding that exit payments received from departing members do not qual…