Tax Exemptions

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Tax Exemptions
State aid: Commission questions tax exemptions for Dutch public companies and takes steps to ensure fair competition between EU ports
Direct from the European Commission.
The European Commission has opened an in-depth investigation to verify whether exemptions from corporate tax granted under Dutch law to public companies, including port operators, are in line with EU state aid rules. The Commission has concerns that exempting certain companies merely because they are publicly owned may give them an advantage over their competitors. The opening of an in-depth investigation gives interested parties an opportunity to submit comments on the measures under assessment; it does not prejudge the outcome. Separately, the Commission is also gathering information on taxation of ports in other Member States. The Commission has informed France and Belgium of its concerns regarding the taxation of ports in these countries and has asked Germany to provide further information to ensure that there are no undue competitive advantages being granted to ports.
Commission Vice President in charge of competition policy Joaquín Almunia said: “Fair competition is crucial for all market players. The Commission therefore needs to verify that public companies, including port operators, in the Netherlands are not given more favourable tax treatment than their private competitors. Furthermore, there should be a level-playing field between ports in the EU, so it is important to make sure that state aid rules are being complied with in all Member States.”
In May 2013, following complaints, the Commission asked The Netherlands to abolish tax provisions exempting certain public companies from the obligation to pay corporate tax (see IP/13/395). The Commission has concerns that these provisions selectively favour public companies over their private competitors, in breach of EU state aid rules. Since then, the Dutch authorities have expressed their intention to subject public companies to corporate tax, but under their plans a number of exceptions would remain, notably for five Dutch seaports: Rotterdam, Amsterdam, Zeeland, Groningen and Moerdijk. Given that the Dutch authorities have not fully accepted the measures proposed by the Commission to ensure compliance with the state aid rules, the Commission has now opened an in-depth investigation.
Cross-border competition plays an important role in the ports sector and the Commission is committed to ensuring a level playing field in this important economic sector. In 2013, the Commission therefore has, on its own initiative, sent a questionnaire to all Member States to obtain a better overview of the corporate tax systems applicable to ports.
In its investigation, the Commission has become aware of possible corporate tax advantages for publicly and privately owned ports in several Member States. The Commission has found indications of sectorial tax exemptions for ports or of other sectorial advantages such as reduced tax rates. In certain Member States, ports are not subject to corporate tax but to an alternative tax regime that might be more favourable. In other Member States, ports do not actually pay any corporate taxes because they are loss-making. This raises questions about whether the public financing of those ports, for example the recurrent compensation of their losses, respects EU state aid rules.
Today, the Commission has sent letters to Belgium and France as first steps to ensure that ports in these countries do not benefit from unjustified corporate tax advantages. The letters, sent as part of the cooperation procedure applicable to existing aid, outline the Commission’s concerns and give Belgium and France an opportunity to respond. In Germany, ports appear to be subject to corporate tax but the Commission has asked for further information regarding certain ports to ensure they do not receive undue competitive advantages. The Commission is also continuing its investigation into the functioning and taxation of ports in other Member States and will take the necessary steps to ensure fair competition between all ports in the EU.
Background
Under the Dutch Corporate Tax Law, revenues stemming from economic activities carried out by public bodies – either as part of the public administration or in the form of publicly owned companies – are, in principle, exempted from corporate tax. There are a number of exceptions from this exemption: certain economic activities (like farming or mining) and certain publicly owned companies (like Schiphol airport in Amsterdam or the National Lottery) are subject to corporate tax. Nevertheless, there are still economic activities carried out by public bodies and many publicly owned companies that remain exempted. These companies compete directly with private players in The Netherlands and in the EU who do not benefit from the same advantage.
The exemption from corporate tax for Dutch public companies dates back to 1956, before The Netherlands’ accession to the EU. The measure therefore constitutes existing aid and its assessment is subject to a specific cooperation procedure between The Netherlands and the Commission. When existing aid seems to be in breach of EU state aid rules, the Commission proposes measures to the Member State. If the Member State does not accept the proposal, the Commission may open an in-depth investigation to verify the compatibility of the existing aid and, if it is not compatible with EU state aid rules, may require the Member State to put an end to existing aid that distorts competition in the Single Market.
The non-confidential version of the decision will be made available under the case number SA.25338 in theState Aid Register on the competition website once any confidentiality issues have been resolved. New publications of state aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News.

Naadam, Three Games of Men in Mongolia

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Naadam, Three Games of Men in Mongolia

This time we would like to seize a momentum to introduce a little bit about the ‘’Naadam’’- the main event to celebrate the National Day of Mongolia which is July 11, and one of the most famous and gorgeous festivals and holidays in Mongolia. The festival is also called “Three Games of Men” as it consists of three sports of strengths, wisdom and courage, namely wrestling, archery and horse racing which is much loved and most watched festival in the country.

Nowadays, Naadam is celebrated from July 11-13 nationwide and its main events are taken place in the capital city Ulaanbaatar where the Grand opening ceremony begins with a ride of soldiers dressed in medieval outfit, bearing Nine Banners of Changes Khan, and the President makes an official opening speech, followed by a spectacular performance of dancers and musicians in costumes representing all ethnic groups in Mongolia, which attracts many people from across the country and guests from abroad.

This year we are celebrating the 2223rd anniversary of the founding of the first Mongolian State, the 808th anniversary of the Great Mongol Empire and the 93rd anniversary of the Mongolian People’s Revolution. Besides the main events of Naadam – wrestling, archery and horseracing competitions, many other activities such as ceremonies for showing respect to Chinggis Khaan and observation of National Flag Day, ceremonial concerts and cultural performances as well as knucklebone shooting tournament and variety of entertainments, including night shows and firework, are organized for the general public during these days.

Naadam festival is an ancient tradition and culture of Mongols with a history of almost 2000 years and profound links in everyday life of nomads who populate the vast territory of Mongolia. For nomads, who were roaming steppes and hills under eternal blue sky to herd a livestock, added with a necessity to hunt and sometimes to overcome not only natural severities but also to fight each other, it was essential to have good skills and mastery of riding horses, archery and even wrestling in order to survive. These skills and cum-savvies were of great value and help for Mongols to conquer and build the biggest land mass Empire the world ever knows.

Having Naadam as the State Ceremony dates back to the end of XII and beginning of XIII centuries when the celebration came into tradition since 1206 when the Great Mongolian Empire was proclaimed and Temuujin was enthroned as Chinggis Khaan. Since then, the tradition to celebrate Naadam has continued for centuries in one fashion or another, and survived many changes of overlordship.

With spread of Buddhism, Naadam was organized during ritual ceremonies to worship mountains cairns. There was also Naadam of ten overlordships, which survived until 1921. In 1922, one year after 1921 revolution, the first nationwide Naadam was organized in Ulaanbaatar and was recorded in history as an Army Naadam. Since then Naadam became an annual official celebration of the National holiday in Mongolia and organized every year in July.

Mongolian style wrestling is most popular sport in the country, and as historians claim, it was originated some seven thousand years ago. The technique and ritual of Mongolian wrestling is distinctly national. There are no weight categories or age limits. The contestants flap their arms in imitation of falcon, hawk and garuda and slapping on thighs showing the readiness to test their strengths without harbouring thoughts of revenge, regardless the outcomes of the match. The aim is to knock the opponent off balance and throw him down, making him touch the ground with his elbow and knee.

Traditionally, 512 wrestlers participate in the competition to test their strength and tricks while 1024 wrestlers may participate on the occasion of great anniversaries. Mongolian wrestling is untimed competition, usually composed of an average of nine rounds of fights. Those who lost are eliminated from further rounds and winners earn glorious titles depending on how many rounds they win in the national Naadam. A wrestler who wins five round earns a title of “Falcon”, one who wins six rounds gets the title of “Hawk”, the winner of seven rounds receives a title “Elephant””and of eight rounds the title of “Garuda”. The winner of nine rounds is called “Lion” and two times “Lion” becomes Champion. Every subsequent victory will add an epithet to the title of Champion like Supreme, Nationwide and Invincible.

Mongolian archery is unique and has been an integral part of nomadic life. Bows are very stiff and hard to bend. The method of making bow and arrow has retained the national tradition to date, and its making takes many days or years.

Traditionally, women were not competitive archers but in the last two decades they have been more and more included. The usual archery contest is between teams, each of 5-7 archers, aiming at a line of 33 leather cylinders from a distance of 75 meters for men and 60 meters for women in a series of knock-out rounds. Men shot 40 arrows and women 20 arrows. The number of target cylinders is reduced as tournament progresses until in the final there are only three. The distance, which was about 200 meters till recently, has been reduced to around 70 meters.

Judges stand to each side of targets, and each time the archer prepare for shot, they begin to sing ancient song ‘’uukhai’’. When the arrow hits the target, judges make a sign with hands to indicate the result. The winners at the national Naadam festival are granted the title of ‘’Mergen’’ (marksman or markswomen). Every subsequent victory at national Naadam will add an epithet to the title like Super, Miraculous, Most Scrupulous, Nationally Memorable and Invincible.

Horseracing also roots centuries back and has its Mongolian specifics. In average, 400 horses of six age categories, or 2400 horses participate in 2 days racing in Ulaanbaatar. It is surpassing 26 000 horses participate in a race all over the country. The length of each race is determined by horse’s age. Horses run for 20-30 km over open grassland with to set rack or course ridden by child over 7 years old.

The winning horse earns a title of ‘’Leader of ten thousands’’ and the top five horses in each class earn the title ‘’airgyn tav’’ and top three are given gold, silver and bronze medals. Hardening a horse for race requires skills and experience from a trainer who also is bestowed a titles depending on how many times the trained horse win or came into top five in national and regional competitions. A paean is recited for the winning horse as well as first five finishers.

In June 2003 the Parliament of Mongolia adopted a law on Naadam which states that “Naadam is a great traditional festival of the nation symbolizing sovereignty and independence of Mongolia”. Therefore, the Naadam is an important festival and cultural heritage of Mongols that had been preserved from ancient times from generation to generation, and deeply linked to the identity and very existence of the nation through its long history and traditions.

Summer in Mongolia is most favourable season in the year to travel and rest, while July is most visited time by tourists as Naadam takes place in this month. The Embassy encourages all of you to visit Mongolia and experience magic natural beauty and the great history of Mongolians, have first-hand information on recent economic developments and livelihood of modern Mongols.

Rwanda: “Together we prosper.”

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Rwanda: “Together we prosper.”
On the picture H. E. Abdelouahab Bellouki, Ambassador of Morocco, H. E. Jean Pierre Karabaranga, Ambassador of Rwanda and his wife Vibviane Uwicyeza Mironko.   By Bonnie Klap, Editor in Chief.
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H. E. Rose Makena Murichi, Ambassador of Kenya, H. E. Jean Pierre Karabaranga and his wife Vibviane Uwicyeza Mironko.
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Ambassadors of El Salvador, Uruguay, Czech Republic, Iraq and Mexico.
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H. E. Retno Marsudi, Ambassador of Indonesia, H. E. Jean Pierre Karabaranga and his wife Vibviane Uwicyeza Mironko and the Ambassador of Senegal H. E. Maymouna Diop Sy.
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H.E. Jaroslav Horá, Ambassador of the Czech Republic, H. E. Jean Pierre Karabaranga and his wife Vibviane Uwicyeza Mironko.
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H. E. Mohamed Elhassan Ibrahim,Ambassador of the Republic of Sudan and H. E. Jean Pierre Karabaranga.
On the occasion of the 20th Celebration of the Rwandan Liberation Day and the 52nd  Anniversary of the Rwandan Independence, His Excellency Mr. Jean Pierre Karabaranga, Ambassador of Rwanda,  hosted a reception at the Carlton Ambassador Hotel. In his remarks the Ambassador  touched on the dark history of his country, mentioning the one million people who had died during the genocide, while the international community looked the other way. However, Ambassador  Karabaranga  was also  proud of the achievements his country has made since its liberation, saying that his country has gone from a dark past to a bright future, adding that Rwanda today is a country of peace, prosperity and self-reliance.
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H. E. Jean Pierre Karabaranga, Bonnie Xu and Roy Lie A. Tjam, Diplomat Magazine’s Editor.
Ambassador Jean Pierre Karabaranga attributed  the success of these achievements to three secrets of success: Staying together, being  accountable and thinking big. The Ambassador also praised the visionary leadership of President Paul Kagame of Rwanda. Ambassador Karabaranga concluded by saying: “God bless the friends of Rwanda.”  

Croatia Diplomats Meet&Greet

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Croatia Diplomats Meet&Greet
By Ellen J. Brager. Asociate Editor, Diplomatic Spouse contributing writer for Diplomat Magazine. After the celebration of the first anniversary of Diplomat Magazine last week, the Carlton Ambassador Hotel was again the trusted venue for another prominent first anniversary. Please take a look at the complete set of beautiful pictures by clicking here: https://www.flickr.com/photos/121611753@N07/sets/  Indeed, one year ago, on July 1st, the Republic of Croatia became an official member state of the European Union after a demanding process that took more than 10 years to be completed.  H.E. Mrs. Vesela Mrđen Korać and Mr. Marko Korać, Ambassador of Croatia and her spouse, commemorated the achievement of this important strategic goal by hosting this month’s Meet & Greet.  H.E. Vesela Mr_en Kora_ & Mr. HamiltonIn the warm evening sun, the outside terrace of the hotel was packed with friends of the Croatian Embassy and other diplomatic missions in The Hague, as well as several people who had played key roles in the preparations and negotiations towards the EU membership, such as laywers, consultants, special advisors and members of Parliament. The Croatian Embassy proudly offered culinary specialties from the country to their esteemed invitees who, upon arrival, could choose between red, white or rosé wine from various parts of the country, as well as delicious cold cuts, such as “Pershut”, a cured ham akin to the Italian prosciutto, Kulen, a sausage similar to Spanish chorizo and Poli salami.  For the sweet teeth there also were elegant boxes of hazelnut almond nougat on every table, while women dressed in typical Croatian costumes from the region around Zagreb carried around different flavors of ice cream, certainly a favorite among the guests. The conversations were lively, the mood was celebratory and the atmosphere was as warm and welcoming as the country itself!  It was another very successful evening organized by Diplomat Club The Hague and Diplomat Magazine in collaboration with a local embassy and distinguished sponsors.   In August we will take a break, but look forward to welcoming you again at the next Meet & Greet in September offered by the Embassy of …   Stay tuned to find out!nr. 7 nr 3 nr. 1 nr. 4 nr. 6        

Worldhotel Belair The Hague celebrating DM’s 1st Anniversary

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Worldhotel Belair The Hague celebrating DM’s 1st Anniversary
Diplomat Magazine celebrates its first anniversary at Worldhotel Bel Air The Hague. This month, Diplomat Magazine celebrated its first anniversary. Starting out small with only a few volunteers, the publication rapidly grew into the popular online magazine (soon with a glossy printed magazine) it is today over the course of only a year, attracting more and more readers every day. Located right in the middle of the Embassy district, Worldhotel Bel Air The Hague already has a strong relationship with the diplomatic community. Many National Day celebrations and other diplomatic events take place at our hotel. The success of Diplomat Magazine can be attributed to the dedication and enthusiasm of its team of national and international highly skilled volunteers. To thank them for their contribution to Diplomat Magazine, General Manager Stephan van der Meulen cordially invited them for an exquisite lunch in the Private Dining room at Worldhotel Bel Air The Hague. For full photo-album picture click here: https://www.flickr.com/photos/121611753@N07/sets/72157645420245886/   HD_20140627_35 “Due to weather conditions, the event moved indoors instead of being held in our Garden Terrace. In the contemporary style decorated room, a delicious three course gourmet lunch was served to the team. It has been a privilege to organise this special event for all the volunteers of Diplomat Magazine. Everyone was in great spirits and the time between courses was utilised catching up with each other.” General Manager of the Worldhotel Bel Air The Hague, Mr. Stephan van der Meulen said. After Ms. Bonnie Klap, Editor in Chief, gave a truly inspirational speech, she cut the orange birthday cake shaped in the letters “DM” to the accompaniment of the beautiful violin version of “Happy Birthday,” performed by Dr. Eugenio Matos, Honorary Associate Publisher and senior diplomat in The Hague. MAIN staffstaff.6 staff.4

Burundi National Day, a Huge Success !!

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Burundi National Day, a Huge Success !!
By Amelia Baxter, Junior Editor. This was an exceptional event, the very first National Day of Burundi held by a home-based accredited ambassador to the Netherlands. An event to celebrate the National Day and the opening of a new diplomatic mission of Burundi in The Hague. Her Excellency, Ms. Vestine Nahimana, was in charge to organize, together with her team and volunteers, the very well attended diplomatic reception on July 1st at Carlton Ambassador Hotel.  We were looking at Mr. Arwin Paulides, General Manager of the hotel, moving back and forth the all day for the preparation of this national day, indeed, sponsored by Diplomat Magazine and Diplomatic Card. Following ambassador Nahimana’s speech, she introduced the CEO of Diplomatic Card, Mr. Marc Stockbroekx, who briefly explained to the attendees the use and practice of Diplomatic Card in terms of automatic VAT deductions for diplomats. Please take a look at the complete set of beautiful pictures by clicking here: https://www.flickr.com/photos/121611753@N07/sets/  Diplomatic Card  sponsored this event, click here for the invitation from the Ambassador of Burundi: BURUNDI.NATIONAL.DAY   20140702_0309 20140702_0338 20140702_0292 20140702_0247 20140702_0378 20140702_0342

Diplomat Magazine First Year Anniversary

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Diplomat Magazine First Year Anniversary
By Amelia Baxter, Junior editor Please take a look at the complete set of beautiful pictures by clicking here: https://www.flickr.com/photos/121611753@N07/sets/  Diplomat Magazine had the great pleasure of celebrating its first anniversary at the Carlton Ambassador Hotel in The Hague. Over two hundred guests, including 22 ambassadors, were welcomed by the reception line consisting of Bonnie Klap, Peter Knoope, and Drs. Eva Maria Mendes. The hotel staff were extremely attentive throughout the event, in particular general manager Arwin Paulides ensured that everything went smoothly. In attendance were those at the heart of the publication: diplomats, photographers, lawyers, and other volunteers. Many embassies contributed to the buffet style dinner, among them the embassies of Guatemala, India, France, Thailand, Indonesia, Iran, Pakistan, el Salvador, Angola, Latvia, Panama, Colombia, Kenya, Saudi Arabia, Philippines, Cyprus, Serbia, Tunisia, China Russia,  the Cabinet of Sint Maarten and Direct Languages Centre.  A jazz group livened up the atmosphere and a DJ ended with an impromptu dance party that lasted until 11pm, after which the party moved downstairs to Rubens Bar. As the brainchild of Dr. Eugenio Matos, the publication is flourishing and a glossy paper version will be out shortly. We would like to thank everyone for their support and extend an especially warm gratitude to our many volunteers for their commitment.Anniversary 2Anniversary 3 Special thanks to Carlton Ambassador Hotel and all members of its staff, embassies of Guatemala, India, France, Thailand, Indonesia, Iran, Pakistan, el Salvador, Angola, Latvia, Panama, Colombia, Kenya, Saudi Arabia, Philippines, Cyprus, Serbia, Tunisia, China Russia,  the Cabinet of Sint Maarten, Direct Languages Centre and all Diplomat Magazine volunteers staff.Anniversary 4Anniversary 6Anniversary 7    Please take a look at the complete set of beautiful pictures by clicking here: https://www.flickr.com/photos/121611753@N07/sets/                                                                         

National Day Egypt

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National Day Egypt
By Bonnie Klap, Editor in Chief. On the occasion of the Egyptian National Day the Ambassador of the Arab Republic of Egypt and Mrs. Farahat hosted a  reception at the World hotel Bel Air in The Hague. The National day of Egypt refers to Revolution Day, the Anniversary of the Egyptian Revolution of 1952 when the Free Officers Movement and Gamal Abdel Nasser undertook the militairy coup that led to the abdication of King Farouk. The reception was very well- attended and the guests could enjoy a wide variety of Egyptian delicacies. They also received a ‘goodie-bag,’ containing a typical Egyptian Scarab beetle and booklets containing extensive touristic information on Egypt. Egypt  is a unique blend of timeless fascination and modern approaches to holiday making, which give it a very special place in the world of tourism.EGYPT 1EGYPT 2EGYPT 5EGYPT 3EGYPT 4

Natalia Tymoshenko

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Natalia Tymoshenko
Interview with Mrs. Natalia Tymoshenko. By Bonnie Klap, Editor in Chief. Mrs. Natalia Tymoshenko, the wife  of the Ambassador of Ukraine, is a brave lady. Although she has broken her leg,  she insists we proceed with  the interview and warmly welcomes me in her residence, sitting on the couch with her leg in a cast. She is ready for her first question. 1). Tell us a bit about your background, such as education, profession and family. “ I come from a family of doctors. My mother and all the relatives from my mother’s side were doctors, as was my father. He was also Member of the Medical Academy, not only in the former USSR, but in  several European countries as well, such as Bulgaria, Poland and Hungary. However, I never saw myself as a doctor and I believe it is always important to do what you want and what you are good at. So I graduated from the National University in Kiev, holding my Masters in Russian language and literature and after a few years I obtained my PhD in Russian language. I have worked as a Professor of Russian language twice  in Austria and for more than 10 years I worked as an Assistant Professor at the Institute of International Relations and International Law, which is where I met Olexander, my husband, who was the Professor of International Relations there. I have  always followed  my husband to his postings: USA, Canada, Singapore and now here in The Netherlands. I have published more than 60 articles, as well as  three books, mostly on Diplomatic Protocol and etiquette and have also participated in radio and TV shows. As for our family, my husband and I celebrated our 25th wedding anniversary this year and both our children live with us here in The Netherlands. Natalia studies Economy and Finance at the University of Amsterdam and our son Alex goes to school  in The Hague. They are both happy here. Natalia worked as a volunteer in an animal shelter and Alex participated in several charity runs.” 2). You have  now lived in The Netherlands for  several years. Can you share an anecdote with us? Did you experience anything funny, or strange, or unexpected or very original? “ We are very happy to live here. It is a great country with a rich history, culture and friendly people. I find that there is a very small distance between the various  levels of  Dutch society. For instance, we have met Mr. Rutte, Prime Minister of The Netherlands, who was accompanied by only one person. How different that is from  many other countries! My husband greeted Mr. Rutte and they started to discuss some business. It was as simple as that. I think that was quite extraordinary.  Also I can see that the people here enjoy their life, at the sea, in the café, they know how to cherish life. I love and admire their sense of well-being, which they call ‘gezellig.’” 3). What can you tell us  about the cultural aspects of Ukraine, such as archtitecture, music etc.? “ Ukraine was populated many centuries BC. It was known by ancient Greeks and Romans and there are still remnants of their settlements here. In our museums we have a great collection of Scythian art, specifically Scythian gold. As for music, Ukraine is well known for its folk songs, classical and pop music. Our language is very melodic. The famous writer Nikolai Gogol was born in Ukraine and the great composer Petr Tchaikovsky was a descendant of the famous Ukrainian Cossack family Tchaika. Regarding architecture, I can mention the Odessa Opera House and the wooden churches in Western Ukraine and certainly the Saint Sophia Cathedral in Kiev, which is on the UNESCO Heritage List, but then again, we could talk for days about Ukrainian culture.”  

The history of Herring

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The history of Herring
By Bonnie Klap, Editor in Chief. During the last couple of weeks a number of Herringparties  were held across the country. Varying in scale, venue, prestige and number of guests, the average  Herringparty in The Netherlands serves two purposes: Sampling the new herring and socializing in a sophisticated manner, with ladies wearing hats and the guests sipping champagne. Perhaps unknown to non-Dutch nationals, attending a Herring Party does not mean tilting one’s head backward and more or less slurping up the herring. Granted, this is the way it is generally eaten by the Dutch, but at the Herring parties the fish is usually served in a more elegant way, neatly cut up in small pieces and served up with chopped, raw onions. However, as already mentioned, attending a Herringparty is as much about meeting interesting people as it is about eating herring and most would argue the former is paramount. The Dutch  have been eating raw herring for hundreds of years and to understand this  Dutch tradition we have to go back in time, to the Middle Ages to be exact, which is when the Dutch herring fisheries  were Europe’s  largest fishery with the fishermen operating sophisticated vessels and immediately processing the catch on board. This was done by soaking the herring in a  salt solution, called brine. This process, which was developed by the Dutch, enabled them to market and sell the herring all over Europe, earning them a strong reputation as fishermen. Herring is caught in the North Sea  between the end of May and the beginning of July. Although the rather slippery, raw fish may not appeal to most foreigners, much can be said in favor of its health-benefits, as herring contains a substantial amount of the healthy Omega 3 fatty acids. Still not convinced to try this Dutch delicacy? Then at least do attend one of the many Herring parties held across the Netherlands, if not to eat herring, then to meet some interesting and distinguished people.
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