The Profit Split Method across Jurisdictions – Report on the Netherlands

This article examines how the profit split method (PSM) is addressed and applied in the Netherlands, focusing on domestic legislation, administrative guidance, advance pricing agreement practice and recent case law. It shows that, although Dutch law and administrative guidance contains only limited explicit guidance on the method, its use is shaped to a large extent by the OECD Transfer Pricing Guidelines and by case law that demonstrates a strongly fact-based assessment of functions, risks and the burden of proof.This article is part of a special issue of the International Transfer Pricing Journal on the application of the PSM across jurisdictions. The other articles include the General Report and contributions on Belgium, France, Germany, Ireland, Italy, Korea, Portugal, Spain and the United States.