Netherlands

More flexibility for securitisation transactions

Gesina van de Wetering, partner and head of the Amsterdam tax practice and Jelger Buitelaar, associate in the Amsterdam tax practice for Norton Rose

On 27 October 2004, the Dutch State Secretary of Finance issued a decree in which the position of the Dutch tax authorities in respect of so-called “loss absorption” clauses in Dutch securitisation structures was clarified. In securitisations, “loss absorption” clauses are included in the debt issued by a special purpose company (SPV) as a means of transferring the risk from the owner of a mortgage portfolio to the holders of those debt instruments.