On 23 June, the United Kingdom voted in a referendum to leave the European Union: Brexit. What are the tax implications of this for Dutch companies?
Brexit
The answer to that question is, for the time being, fairly simple: none. Of course, the result of the referendum must still be followed by a formal notification by the British government that it is withdrawing from the EU – the actual Brexit. And then there will be a transition period during which the parties will negotiate with one another. Throughout this time, the legal and tax situation will remain unchanged.
Negotiations
The consequences that will follow depend on the agreements that the United Kingdom will reach with the European Union. A number of scenarios are conceivable in this regard. For example, the UK could become a member of the EEA (the European Economic Area), just like Norway, Iceland and Liechtenstein. Or, like Switzerland, it could conclude an independent (trade) agreement with the EU.
The whole of Great Britain?
The UK’s withdrawal from the EU affects England, Wales, Scotland and Northern Ireland, but it is possible that one (or more) of these regions may remain part of the EU after all (Scotland, in particular, seems open to the idea).
Brexit also has implications for the Channel Islands and the Isle of Man, which are part of the United Kingdom, as well as Gibraltar and a number of Caribbean islands, as EU law applies in part to these territories.
The laws and regulations currently in force in Great Britain still consist largely of implemented EU legislation. Once the withdrawal from the EU has taken effect, the UK will probably need a considerable amount of time to amend its laws and regulations. Furthermore, it is likely that parts of the legislation will simply remain in force, even though they are (originally) based on EU regulations.