From 1 January 2016 local authorities and other government bodies are liable for corporation tax to the extent they run a business. Local authorities, provinces, the state and other government bodies are therefore liable for tax on activities that qualify as a business. Whether or not your organisation will eventually have to pay corporation tax, the new law requires adjustments within your processes.

The Local Government Sector Group specialists have extensive experience in supporting organisations in the transition from non-taxable to taxable status and have expertise in the public sector playing field.

Impact of legislation on your organisation

Government organisations are busy identifying the consequences of the the corporation tax liability. Initial discussions with the Dutch tax authorities show that documentation, substantiation of viewpoints and a secure tax return process are important focus areas. Even if your organisation may not to have to submit any returns. When the corporation tax liability is implemented, it is important to take these elements into consideration.

Support

BDO can help you gain control over these changes in a structural manner and support your organisation with a team of tax advisers, accountants, legal experts and IT specialists. By using a 5-phase implementation plan BDO can step in at any time to support your organisation. The plan is focused on:

• positively identifying the separate businesses within your organisation, the tax result and the tax balance;
• setting up and securing the corporation tax process;
• creating insight into and gaining control over the administrative, organisational and policy-related effects of the tax liability.

After implementation of the corporation tax liability, many organisations will have to submit returns on an annual basis. BDO can support you with this and. we offer our clients the opportunity to use an online environment that supports the tax return process and promotes independent handling of tax affairs.

Contact

We would be happy to discuss the effects the tax liability may have on your local authority and what BDO can do for your organisation. Please contact one of our Local Government Sector Group specialist on telephone number +31 88 236 48 06 to arrange a meeting without any obligation.