Ten years of Dutch loss compensation regime for holding and financing companies

Dutch holding and financing companies are subject to a specific tax loss compensation regime, the so-called holding company loss rule. In short, the purpose of this rule is the prevention of the compensation of losses resulting from holding and financing activities with profits from operational activities. This article concerns an evaluation of the rule from both a policy perspective and a tax-technical perspective. Several imbalances and inadequacies of the rule, in particular with respect to the application of the rule in cross-border situations, are highlighted