Model guarantees for major international sports events
Introduction
Foreword
Major international sports events are very popular in the Netherlands. It is common
knowledge that in addition to attracting a large audience, these events also generate
significant social and economic benefits. Furthermore, it is the Netherlands’ ambition
to rank among the top-ten sports-countries in the world. To achieve that ambition,
and to establish a track record, it is important to gain experience in organizing major
international sports events. To that end, the Netherlands wishes to provide a stage
for the international sports community and its own leading athletes, who would then
also be able to excel in the Netherlands and not only at tournaments and events in
other countries. It is therefore important to organize major international sports event
in this country.
Requests for guarantees
International sports federations increasingly request guarantees from national
governments in selecting a venue for their major international sports events. The
Netherlands has recently experienced this for itself with its Bid to host the football
World Cup 2018 (FIFA) and in being awarded the final of the Europe League in 2013
(UEFA). The guarantees can be demanded for the phase prior to the awarding of the
event (the bid phase), but also for the subsequent phase (the actual organization of
the event). As a rule, the local organizing committee will play a central role in the
organization of an event, usually on the initiative of the relevant sports association.
For whom are the guarantees intended?
Based on previous experience, the Dutch government therefore felt it should draft
model guarantees for the benefit of international sports federations, local organizing
committees and other stakeholders. These models describe the facets of Dutch policy
that are relevant for the organization of events and guarantees that could be given
to cover them. The government’s purpose with these models is to anticipate
questions that may arise so that local organizing committees, the relevant sports
associations and the international federations know where they stand sooner. For its
part, the government will also be able to respond more quickly and easily to requests
for guarantees and the wishes of the parties requesting them.
Why model guarantees?
As already mentioned, these are model guarantees whose purpose is to inform
organizers of sports events in advance of what guarantees the government can
provide. They will be available to any sports federation that is considering organizing
an international event and intends to request guarantees from the government for it.
Since organizers of events will not all require the same guarantees, a model has
been chosen that, it is expected, can be tailored to the specific event. At the same
time, it will always be possible to review whether there are issues that require
special attention in view of special circumstances arising from the branch of sport or
the type of event concerned. The model can always be tailored to the specific
situation.
To what do the guarantees relate?
Experience up to now has shown that guarantees requested by international
organizations from the government pertain to seven legislative and regulatory
domains. Each domain is dealt with in a separate section later, including a
description of the current legal position. It should also be noted that the level of
complexity and detail of the relevant laws and regulations differs greatly depending
on the domain to which the guarantees apply. Those differences are also reflected in
the formulation of the guarantees. For example, in view of the complexity of the
subject, guarantees relating to tax will differ substantially from those relating to
work permits and visas. The model guarantees will be evaluated every year to decide
whether they need to be adapted to new or amended legislation. Accordingly, these
models will be kept constantly up to date.
Further description of the guarantees
Before addressing the seven guarantees, the general legal framework in the
Netherlands will be briefly described. One of the aspects covered is the relationship
between the different tiers of government, which is a very important factor for the
organization of events in view of the division of powers and responsibilities. The
individual guarantees will then be described.
General legal framework in the Netherlands
Legislative procedure
The Netherlands is a democratic state based on the rule of law. The legislative
process in the Netherlands is laid down in the constitution and is based on interaction
between the government and the (bicameral) parliament, each with its own
responsibilities. The legislation produced within this framework is adequate. If in
exceptional circumstances an amendment to a law has to be considered – for
example, with a view to requests for guarantees – the Dutch government is capable
of making the amendment in good time, naturally subject to the approval of
parliament.
Power sand responsibilities of central government and municipalities
The Netherlands is a decentralized state, in which governmental powers are divided
between central government and other local and regional authorities, including
municipalities. The municipalities have a constitutionally guaranteed autonomy, with
their own regulatory powers. The mayor of a municipality is responsible for
maintaining public order within the territory of the municipality.
This administrative structure means that in most cases the municipality will be the
principal point of contact for organizers of sports events, since most events take
place within a single municipality. The Dutch government will only be directly
involved if it should prove necessary. The precise nature of its role will depend,
among other things, on the scale of the event and whether other municipalities and
other government agencies are involved, in which case the government can provide
coordination if necessary.
General rules to protect the rights of individuals and organizations
The protection of the rights of individuals, companies and other private organizations
in the Dutch legal system is based on general rules laid down in codes of criminal
law, administrative law and private law. These rules are closely entwined with human
rights, as laid down in instruments such as the European Convention for the
Protection of Human Rights and Fundamental Freedoms, and with the law of the
European Union, which constitutes an integral element of the Dutch legal system.
These general rules guarantee equal treatment for every person and organization in
the territory of the Netherlands and a level playing field for enterprises in the
European Union. Under these rules, everyone has access to effective legal remedies
to ensure protection of their rights, including effective access to the courts. In
accordance with the rules of private law, injured parties are entitled to reparation
and compensation. There is no place for special exemptions beyond these rules.
The guarantees
The guarantees cover the domains of:
1. Visa and entry procedures
2. Work permits
3. Taxes
4. Security measures
5. Bank and foreign exchange operations
6. Commercial rights
7. Telecommunications and information technology.
1.
Visa and entry procedures
Explanatory note.
Legal framework
Visa and entry procedures are based on EC Regulation No. 562/2006 (establishing a
Community Code on the rules governing the movement of persons across borders) and
EC Regulation No. 810/2009 (establishing a Community Code on Visas), also known as
the Schengen Borders Code and the Visa Code, respectively.
Entry conditions in general
Citizens from some non-EU countries are required to hold a visa when travelling to
the Schengen Area. The EU has a common list of countries whose citizens must have
a visa when crossing the external borders and a list of countries wh ose citizens are
exempt from that requirement. These lists are set out in Regulation No. 539/2001
and its successive amendments. Generally, a short-stay visa issued by one of the
Schengen States entitles its holder to travel throughout the Schengen States f or up
to three months within a six-month period. Visas for visits exceeding that period
remain subject to national procedures.
For stays not exceeding three months per six-month period, the entry conditions for
third-country nationals are the following:
(a)
(b)
(c)
(d)
(e)
They are in possession of a valid travel document or documents authorising them
to cross the border;
They are in possession of a valid visa, if required pursuant to Council Regulation
(EC) No. 539/2001 of 15 March 2001and its successive amendments, except
where they hold a valid residence permit;
They justify the purpose and conditions of the intended stay and they have
sufficient means of subsistence, both for the duration of the intended stay and for
the return to their country of origin or transit to a third country into which they
are certain to be admitted, or are in a position to acquire such means lawfully;
They are not persons for whom an alert has been issued in the SIS for the
purposes of refusing entry;
They are not considered to be a threat to public policy, internal security, public
health or the international relations of any of the Member States, in particular
where no alert has been issued in Member States’ national data bases for the
purposes of refusing entry on the same grounds.
Entry conditions in relation to this sports event
Foreign nationals subject to visa requirements will be issued with a Schengen visa
enabling them to attend or to participate in this sports event for a maximum period of 90
days provided that all visa conditions are fulfilled. Spectators will be granted a visa –if
required- for the duration of the event (or a part of it). Participants, accredited members
and officials will be issued with a visa –if required- for a longer period (maximum of 3
months) on request.
Visas issued to participants, accredited members and officials will be granted at no cost,
provided they are entering the Netherlands in connection with activities relating to this
specific event. The organisation under whose auspices this event is taking placeis
therefore required to deliver a list of those persons to the competent Dutch authorities in
time.
Note: an accredited member or official may sometimes be required to be in possession of
a work permit. See guarantee no. 2 concerning work permits.
Guarantee No. 1
Visa and entry procedures for sport events
(a) Foreign nationals - participants and visitors - fulfilling all the entry conditions
as set out in EC Regulation No. 562/2006 (Schengen Borders Code) will be
granted permission to enter the Netherlands to attend or to participate in this
sports event. Insofar as those participants and visitors are subject to entry
visas, the diplomatic missions shall grant visas in an expeditious and serviceoriented manner in conformity with EC Regulation No. 810/2009 and
applicable visa facilitation agreements.
(b) Applications for permission to enter or exit the Netherlands made by or on
behalf of any person entering the Netherlands in relation to the sport s event
will be considered without regard to their national or ethnic origin, colour,
religion, sex, age or mental or physical disability;
(c) Participants, accredited members and officials of the sports event fulfilling all
the entry conditions as set out in the above-mentioned EC Regulations will be
permitted to enter the Netherlands for a maximum period of 3 months in
order to fulfill their functions in relation thereto, and any required visas will be
granted at no cost by Dutch representations and in an expeditious and
service-oriented manner if the criteria for obtaining them are met.
2.
Work permits
Legal framework
This guarantee relates to the possibilities for employing aliens in the Netherlands and
the procedures for applying a work permit.
Text Guarantee
A. Work Permits
 Foreign nationals who wish to work in the Netherlands are required to have a
work permit.
 The employer of foreign nationals must have work permits for employees who
wish to work in the Netherlands.
 Athletes do not require a work permit to participate in a sportsevent, provided
they will not remain in the Netherlands for longer than four weeks.
 Nationals of the European Economic Area (EEA) and Switzerland, with th e
exception of Croatia and - until 1 January 2014 - Bulgaria and Romania, do
not require a work permit to work in the Netherlands.
B. Conditions for acquiring a work permit
 There is no one present in the Netherlands or in the other countries of the EEA
and Switzerland to perform the work concerned. This must be demonstrated
by recruitment efforts.
 The foreign national is in possession of or has applied for a residence permit
that permits him or her to work, or in possession of a visa if the work is for
less than three months.
 The foreign national earns a wage in line with the prevailing market.
 Even if the work is part-time, the foreign national earns at least the statutory
minimum monthly wage for a full time job.
 The employer complies with the prevailing terms of employment.
 Hygienic accommodation must be available for the employee.
 If the wage exceeds € 52.010,- (€ 38.141 for employees younger than 30
years) no work permit is required. This exception does not apply to
professional football players. For them a special arrangement exists.
C. Issuing of work permits
 The employer applies for work permits to UWV WERKbedrijf. UWV WERKbedrijf
will arrange a single point of contact.
 Applications for a work permit under the prevailing legislation will be
considered without regard to nationality or ethnic origin.
 Work permits will be issued according to a clear and expeditious procedure.
3.
Tax assessment and collection of tax
Legal framework
The activities on which the Dutch Tax Administration levies tax are laid down in the
current national and international legislation as it applies in the Netherlands (as of 1
April 2012).
The Netherlands is a signatory of numerous multilateral international regulations,
mainly in connection with the Netherlands’ membership of the European Union. The
regulations have direct or indirect application in the national legal system. One
example is the European VAT Directive, which does not allow for national derogation
from the EU system except in cases specifically defined in the directive. This means,
for example, that the Dutch government has no autonomous powers to exempt
products and services from VAT.
For the organizers and those deciding on the awarding of a major sports event,
annex 1a contains an explanation of the fiscal consequences of choosing to hold a
sports event in the Netherlands. Annex 1b contains a general description of the
Dutch tax system and the principal taxes. These can only be described in general
terms in the context of this guarantee. Whether tax will have to be paid on particular
activities during an event, and if so, how much, depends on the precise facts and
circumstances, which are assessed and established by the Dutch Tax Administration.
Nevertheless, the activities involved in organizing and hosting international sports
events are generally the same, and the tax aspects are also generally more or less
the same. Accordingly, a number of common situations and their tax implications are
described in annex 1b.
General
Prevention of double taxation
The Netherlands has concluded more than 90 treaties for the prevention of double
taxation. Most of the treaties contain a so-called ‘athletes’ clause’, which assigns the
power to levy tax to the country in which the athlete has competed in an event.
However, for many foreign participants in sports events in the Netherlands the
government does not exercise its right to levy tax. For competitors at events who are
residents of a country with which the Netherlands has concluded such a treaty this
means, for example, that the Netherlands does not levy tax on the income they earn
from the event. There is also an exemption for participants who are residents of
countries that have not signed a treaty with the Netherlands if they are competing
at tournaments such as European or World Championships.
Rapid information provision
Another important guarantee given by the Dutch government to international
organizations that are considering awarding a major sports event to the Netherlands
is that it can quickly provide information in advance about who will be assessed for
tax, on what activities and at what rate.
Prior consultation with the Dutch Tax Administration is necessary
That guarantee depends on the organizers of the event informing the Dutch Tax
Administration, well in advance and as clearly as possible, of the relevant facts and
circumstances concerning the organization of the sports event. The Dutch Tax
Administration has established the Landeljke Doelgroep Sport (National Target Group
Sports) as the contact point for this purpose. This is the agency designated to handle
any enquiries regarding assessment for and levying of taxes in the Netherlands
during major sports events:
Tax Administration/Utrecht-Gooi,Team MGO
Chairman, National Target Group Sports
P.O. Box 18500
3501 CM Utrecht
Telephone: +31 88 152 7 787
4.
Security measures
Framework
The points of departure for issues relating to safety and security are described in the
guidelines for ‘National Events’.
General
The Dutch government can ensure and guarantee that, in close consultation with the
Local Organising Committee (LOC) and the sports association/federation, it will draw
up an integrated security concept and will coordinate its implementation at national
and local level. Responsibility for the security concept will be shared by different
parties and the concept will encompass all measures necessary to guarantee the
safety of everyone involved in the sports association/federation’s event, with special
attention for those groups and individuals and locations where that is felt to be
necessary on the basis of a dynamic risk analysis.
Persons and locations to be safeguarded
The Dutch government and all public authorities at national, regional and local level
will, in close partnership with the LOC, coordinate and implement all necessary
security measures to safeguard the safety of, among others:
- the relevant sports associations/federations, their member organizations and their
employees and officials;
- the host organization and the LOC, including their employees, officials and team
members such as volunteers, stewards and others working in the stadium;
- suppliers and contractors of the sports association/federation;
- spectators, fans, guests and hospitality clients at the events;
and
- all other organizations and persons demonstrably involved in the event.
This will apply at all times, inside and outside the stadium, at other locations for the
event, training facilities, hotels, media centers, accreditation centers and fan venues
for the event and public locations for interested persons, before, during and after the
events.
Availability of services
The Dutch government guarantees to the organizer (sports association/federation)
that all the operational services necessary for the protection and security of the
event and for the safety and protection of the physical health of the aforementioned
persons and organizations will be available.
The Dutch government undertakes and guarantees that it will provide all the
necessary police escorts and other special security measures for the teams and
competition officials during all their movements in the Netherlands, where this is
deemed necessary on the basis of a dynamic risk analysis by the competent
authorities.
Explanatory note:
Security concept
An integrated, multi-party security concept is one of the pillars of a successful
tournament. The Dutch Ministry of Security and Justice can guarantee that the
safety, protection and welfare of everyone involved in the tournament is an absolute
priority.
The Dutch Minister of Security and Justice has formulated a detailed and
comprehensive concept embracing all necessary security measures, which
incorporates experience gained during earlier major sports and cultural events
throughout the world, as well as local circumstances and general security
considerations, so that the highest possible level of security can be provid ed for the
event at all times. These security measures are described in the guidelines for
‘National Events’.
The security concept takes account of the fact that the event being organized by the
sports association/federation is an important global sports event, which will attract a
lot of public interest worldwide.
Costs
“The competent authorities in the Netherlands will make all necessa ry arrangements
with the LOC with regard to all legitimate costs, expenses and obligations in
connection with the security measures for the event”.
5.
Bank & Foreign Exchange Operations
(Model-)guarantee
(a)
The government of the Netherlands allows unrestricted import and export of
foreign currencies to and from the Netherlands by all entities and individuals
directly or indirectly involved in this sports event, subject to the obligation to
declare cash amounts exceeding € 10,000 in accordance with the EU Cash
Control Regulation.
(b)
The government of the Netherlands allows unrestricted exchange and
conversion of international currencies into any other major currency on the
conditions prevailing on the international foreign exchange market by all
entities and individuals directly or indirectly involved in this sports event,
subject to the applicable rules for customer due diligence and reporting
requirements for unusual transactions.
This guarantee does not prejudice the full and continuous application of relevant EU
and national legislation concerning the protection of the financial system from abuse
through money laundering, the financing of terrorism and other illicit purposes.
Explanatory Note
Free movement of capital is a cornerstone of the EU’s Internal Market. It enables
European financial markets and services to be integrated, open, competitive and
efficient. In addition, the Netherlands is an open economy with a large and
internationally active and renowned financial sector. The Dutch gov ernment does not
create or envisage any national barriers to the trade in or the exchange and
conversion of international currencies.
Contributing to a transparent and stable international financial system, and in
accordance with international agreements, the Dutch government takes action
against money laundering and terrorist financing. In this context, there are two
specific elements in relation to the import/export or exchange/conversion of
currencies which should be taken into account:
1. Cash controls: In line with EU Regulation No. 1889/2005 (the Cash Control
Regulation), every person entering or leaving the EU through the Netherlands
carrying more than € 10,000 in cash, or its equivalent in other currencies or easily
convertible assets (e.g. bonds, shares, traveler’s cheques), should declare the total
amount to Dutch customs. There are no restrictions on the amount that can be
imported or exported, but a declaration to customs is required above the € 10,000
cash threshold.
2. General preventive measures: Financial institutions which provide services such as
exchange and conversion of currencies in the Netherlands are subject to Dutch
legislation, which requires these institutions to perform customer due diligence and
to report unusual transactions when there is a suspicion of money laundering or
terrorist financing. Again, these measures do not constitute barriers or restrictions to
the aforementioned transactions, but they are a safeguard against misuse of the
financial system for illicit purposes.
6.
Commercial rights
I
Explanatory Note
Protection of rights
The Netherlands guarantees that all intellectual property rights mentioned in this
document are protected according to the Dutch intellectual property laws. With
regard to patent, trademark and design rights regarding an event, it is up to the
organizer of that event to take care of the formalities (timely registering those rights
with the responsible authorities using the appropriate and applicable measures of
national law to acquire the protection) and to make sure that the material and legal
requirements for obtaining the protection are fulfilled.
There is no specific “ambush marketing law” in Dutch legislation. We consider
“ambush marketing” to be covered by a) intellectual property laws, more specifically
the copyright and trademark law, b) unfair competition law, more specifically
misleading and comparative advertising law and the unfair commercial practices law,
and c) general tort law. There are also (civil) opportunities to impose further
conditions through access rights.
Enforcement
An adequate number of law enforcement officers will be available.
The control of the importation of counterfeit and pirated goods is part of the normal
functioning of the Dutch customs officers.
II
Text Guarantee
In relation to [the event] taking place in the Netherlands, the Government of the
Netherlands, represented by the undersigned who are duly authorized to act and
provide this Guarantee on behalf of the Netherlands, hereby represents, warrants,
ensures and guarantees to [organizing entity] the following:
Definitions
For the purposes of this Guarantee, the following definitions shall apply:
[subject to the Competition]
Legal framework
The commercial rights (Intellectual Property Rights) in the Netherlands are based
upon Dutch law, European directives and international law. Intellectual Property
Rights means the rights covered by the Agreement on Trade-Related Aspects of
Intellectual Property (TRIPS) and other related international agreements on
intellectual property to which the Netherlands is a party.
Intellectual Property Rights
Below a summary is given of the most relevant intellectual property rights with
regard to organizing a sport event: copyright / neighbouring rights, designs,
trademarks, patents.
Copyright / Neighbouring rights
In the Netherlands copyright is regulated in the Copyright Act (Auteurswet),
neighbouring rights of broadcasting organizations are regulated in the Neighbouring
Rights Act (Wet op de naburige rechten).
For acquiring copyright or neighbouring rights protection no formalities need to be
fulfilled. Copyright expires in principle 70 years from the date of January 1 of the
year following the death of the creator. The neighbouring right of a broadcasting
organization expires 50 years from the date of January 1 of the year following the
first transmission of a broadcast.
Designs
Design law is regulated in the Benelux Convention on Intellectual Property (B enelux
Verdrag inzake de Intellectuele Eigendom).
A design is the appearance of a new product or a part thereof. When reference is
made to “design right”, it can refer to a 2 as well as to a 3 dimensional object.
Objects / elements that are necessary to obtain a technical effect are excluded from
protection. A design has to be new and have an individual character. To acquire
design rights formalities (such as paying a fee) exist. After registration, the
protection is valid for 5 years. This can then be further extended with four periods of
5 years (a fee is due).
Trademark
Trademark law is regulated in the Benelux Convention on Intellectual Property
(Benelux Verdrag inzake de Intellectuele Eigendom).
A trademark is a sign used to distinguish goods or services from competitors. To
acquire a trademark, a sign needs to have a distinctive character. Another demand,
for instance, is that the sign may not be deceptive. To acquire trademark rights
formalities (such as paying a fee) exist. After registration, the protection is valid for
10 years. Upon request, the registration can be renewed for further periods of 10
years (a fee is due). In the Netherlands it is possible to accelerate registration by
paying an extra handling fee, this leads to a registration i n 24 hours. The procedure
for definitive trademark registration takes about 2,5 months.
Patent
Patent law is regulated in the Patent Act 1995 (Rijksoctrooiwet 1995).
The invention has to fulfill three material conditions: novelty, inventive step,
industrial application.
To acquire a patent formalities (such as paying a fee) exist. After registration, the
protection is valid for 20 years. From the third year after the application was filed,
the inventor must pay maintenance fees to maintain the patent. Inventors may
submit their application in Dutch or in English. When English is used, the conclusions
must be Dutch.
Ambush marketing
There is no specific “ambush marketing law” in Dutch legislation. We consider
“ambush marketing” to be covered by a) intellectual property laws, more specifically
the copyright and trademark law, b) unfair competition law, more specifically
misleading and comparative advertising law and the unfair commercial practices law 1
(article 6:194 and 6: 193a Civil Code), and c) general tort law (article 6:162 Civil
Code). There are also (civil) opportunities to impose further conditions through
access rights.
1
Cf Directive 2006/114/EC of the European Parliament and of the Council of 12 December 2006 concerning
misleading and comparative advertising and Directive 2005/29/EC on Unfair Commercial Practices.
Formalities
With regard to patent, trademark and design rights regarding an event, it is up to
the organizer of that event to take care of the formalities (timely registering those
rights with the responsible authorities using the appropriate and applicable measures
of national law to acquire the protection) and to make sure that the material and
legal requirements for obtaining the protection are fulfilled, regarding that event.
The Benelux Office for Intellectual Property 2 takes care of the registration of
trademarks and designs in the Benelux. The Agentschap NL Octrooicentrum 3 grants
patents.
Enforcement
Civil enforcement
When the holder of an intellectual property right notices that his right is infringed, he
can decide to take action. He can either try to negotiate a compromise, or initiate a
lawsuit against the infringer. The Netherlands has fast track judicial procedures in
place that can be utilized. These are called ‘summary proceedings’. These
proceedings were devised for swift litigation, and are proven to be highly effective in
putting into effect all sorts of legal measures, such as executing seizures.
Enforcement directive
The Netherlands has implemented the European directive on enforcement of
intellectual property rights (Directive 2004/48). As a result, rightholders obtained
more possibilities to enforce their rights in civil proceedings. This directive defines
measures and procedures to enforce intellectual property rights (for example:
summary proceedings without rebuttal (ex parte), the ability to fully reclaim
procedural costs, or seizure of evidence).
Criminal enforcement
Starting point is civil enforcement initiated by the rightholder. Criminal enforcement
by the public prosecutor is meant to be the last resort and is used where there is a
threat to public order or when a risk to public health exists. Most intellectual
property laws have criminal provisions or refer to the Criminal Code, examples can
be found in art. 31a Copyright Act (A person who, intentionally, publicly offers for
distribution; has in his possession for the purpose of reproduction or distribution;
imports, conveys in transit or exports, or keeps for profit, an object containing a
work infringing another person's copyright, is liable to a term of imprisonment of not
more than one year or a fine of the fifth category) and article 337 Criminal Code (a
person who, intentionally, imports, conveys or exports, sells, offers for sale, delivers,
distributes or has in stock false, forged or illegally manufactured brands, is liable to a
term of imprisonment of not more than one year or a fine of the fifth category).
Customs
Enforcement of IPR Rights is done mainly by civil actions taken by the companies
themselves. Customs are placed at EU borders to protect legitimate businesses and
citizens by intercepting (possible) IPR infringing goods even before they are placed
on the market. Netherlands Customs have skilled experts and a professional system
in service, dedicated to enforce EU and national IPR-law.
2
3
www.boip.int
http://www.agentschapnl.nl/nl/organisatie/divisies/divisie/NL%20Octrooicentrum
7. Telecommunications and Information Technology
Explanatory Note
The telecommunications market in the Netherlands has been liberalised (freely
accessible market), which means that the market parties are responsible for making
the infrastructure and services available. For its part, the Dutch government has a
responsibility to create the right conditions for efficient electronic communica tions
markets, with the right mix of competition and innovation.
The Dutch government monitors compliance with the statutory and license
obligations of the operators.
This means that those creating the demand (the organizing entity) must consult the
operators about the requirements. The parties creating the demand must start a
tendering the procedure in which the requirements are converted into a specific
case.
It should be noted that the Dutch government have sufficient faith in the capabilities
of the operators in the telecom market.
Text Guarantee
In relation to events taking place in the Netherlands, the Government of the Netherlands,
represented by the undersigned who are duly authorised to act and provide this
Guarantee on behalf of the Netherlands, hereby represents, warrants, ensures and
guarantees to [organizing entity] the following:
A.
Definitions
For the purposes of this Guarantee, the following definitions shall apply:
[Depending on the event]
B.
Telecommunications and Information Technology Undertakings
The telecommunications market in the Netherlands has been liberalized (freely
accessible market). This means that the market parties are responsible for making
the infrastructure and services available. It also means that the Dutch government
does not provide communications networks or services.
The telecommunications infrastructure in the Netherlands meets the highest
international standards and requirements. The Netherlands has a very high -quality
and dense information infrastructure that enables very fast connections from almost
every location, and certainly from sporting venues. Use can be made of very fast
connections for international and transcontinental reporting. Additionally, satellite
communications are also available.
The main digital port to the outside world is the Amsterdam Internet Exchange
(AMS-IX), which is the most important Internet junction in the Netherlands and the
largest in the world. A very large part of the Internet traffic with other countries and
the data traffic from and between the Dutch Internet providers, mobile operators,
content providers, webhosters, etc, is handled via the AMS-IX network.
In terms of the number of parties connected and the volume of traffic, AMS -IX is the
world’s largest Internet hub.
The Dutch government has a responsibility to create the right conditions for eff icient
electronic communications markets, with the right mix of competition and innovation.
The allocation of frequencies (for mobile services and broadcasting (radio and
television)) and numbers, market regulation, consumer protection, safety and
supervision are set out in legislation. The legislation also guarantees the availability
and affordability of a number of key telecommunications services (universal services)
and provides the regulator with the instruments to stimulate competition by
regulating access to networks and preventing abuse of a dominant position. The
Dutch government monitors compliance with the statutory and license obligations of
the operators.
Making available and coordinating the necessary radio spectrum (e.g. for satellite
connections, connections for reporting, wireless microphone use) is also a
responsibility of the government, in this particular case of the Dutch Radiocommunications Agency (RA), which falls under the Ministry of Economic Affairs . The
RA coordinates the use of radio spectrum to avoid interference.
The RA has a very successful track record (in handling the radio spectrum) during
previous sporting events. For example, at UEFA’s Euro2000 it organi zed the
coordination and cooperation between Belgium and the Netherlands for an event
covering eight stadiums (four in the Netherlands and four in Belgium).
The RA’s experience with major international events has shown that a wide variety of
communications equipment is used. Many foreign users will bring their own radio
equipment to the Netherlands. Experience has also shown that the absence of
procedures can lead to interference in the radio spectrum and complaints from users.
As spectrum is a scarce resource, limits are placed on its use. At an early stage of
the event planning process, the RA can provide a detailed insight into the amount of
usable spectrum and the actual licensing conditions. Fees are payable for the
licensing process and enforcement actions to prevent or resolve interference issues.
C.
Costs
The local organizing committee (LOC) and the operators must consult about the
requirements of [the organizing entity]. The LOC must start a tendering procedure in
which the specific requirements of [organizing entity] are converted into a specific
case. The costs of this tendering procedure will be borne by the LOC.
D.
Legal statement/General Undertakings
The main objectives of the Telecommunications Act are to allocate frequencies (for
mobile services and broadcasting (radio and television)) and numbers, and to make
provision for market regulation, consumer protection, safety and supervision. The
Telecommunications Act also guarantees the availability and affordability of key
telecommunications services (universal services).
The Telecommunications Act has to be consistent with a number of European
directives, the most important of which are the Access Directive, Authorisation
Directive, Universal Services Directive, Electronic Communications Directive and
Competition Directive. These directives serve to harmonize the telecommunications
markets in the European Union and derogation from those directives by the
Netherlands (or any other member state) is not allowed.
The Telecommunications Act also provides the Netherlands Authority for Consumers and
Markets (ACM) with instruments to promote competition by regulating access to
networks and preventing the abuse of a dominant position. The ACM and the
government (Radio-communications Agency) monitor compliance with the statutory
and license obligations of the operators. They can impose a fine, withdraw a license
or take other appropriate measures.
Annexes
1. Explanatory notes to the different taxes:
a. The Dutch tax provisions and international sports events
b. General descriptions of the Dutch tax system and the main taxes
Annex 1a
The Dutch tax provisions and international sports events
The organizer (profit)
If an organizer from another country performs the activities relating to the
organization of the sports event through a company or a foundation or association
that carries on an enterprise established in the Netherlands, it will be liable for
corporation tax on those activities. If the foreign organization’s activities are carried
out through a ‘permanent establishment’ in the Netherlands, the profit attributable to
the permanent establishment will be liable for corporation tax. Whether there is
deemed to be a permanent establishment in the Netherlands depends on numerous
factors. The Dutch Tax Administration assesses this in accordance with the crite ria
laid down by the OECD.
To give an example, if an organizer established in another country sells tickets for
the sports event or conducts PR or merchandising activities through a Dutch
company or a Dutch foundation or association or through a permanent establishment
deemed to be established in the Netherlands, those activities are subject to Dutch
corporation tax. The corporation tax rate is 25% for amounts above € 200,000 and
20% for amounts beneath this threshold. If the foreign organizer arranges thes e
activities abroad or they are performed by an organization that is not regarded as a
permanent establishment in the Netherlands, there is no liability for Dutch
corporation tax.
Employees of the organization (wage tax and social insurance contributions)
If wages are paid to an employee who is not resident in the Netherlands by a
company established in the Netherlands, a permanent establishment on the
Netherlands of the foreign organizer or by a Dutch foundation or association, those
wages are subject to wage tax in the Netherlands. If the wages are not paid by any
of the aforementioned entities and the foreign organizer does not have a permanent
entity in the Netherlands, as a rule the foreign organizer will not have to pay wage
tax on the wages paid in the Netherlands. If the employees working in the
Netherlands are from another country and possess specific expertise, the employer
can pay 30% of the salary as a tax-free allowance subject to certain conditions, one
of which is that the employees concerned must live more than 150 km from the
Dutch border.
As a rule, a foreign national who is employed by an organization and works
exclusively in the Netherlands, is required to be insured in the Netherlands. If the
employee is temporarily seconded to the Netherlands for a sports event, in principle
there will be no insurance requirement because the secondment principle of EU
Regulation 883/2004 or a treaty on social insurance will apply,
Employees of the organization (income tax)
If an employee lives in the Netherlands, or is resident abroad and receives a salary
from an employer established in the Netherlands, or is a foreign resident who has
lived in the Netherlands for more than 183 days within a period of 12 months, the
employee must declare the income from the sports event in his income tax return,
unless wage tax has already been withheld on that income and he is not required to
file an income tax return. The employee can claim a refund of any excess wage tax
withheld by submitting an income tax return.
Volunteers
An organization can pay volunteers an allowance to cover expenses without any tax
consequences for either the organization or the volunteer. If the organization wishes
to remunerate a volunteer, the remuneration must not be at market rates. The
remuneration will not be taxed if it does not exceed € 150 a month and a total of €
1,500 a year. Payment in kind, such as clothing, also counts towards this maximum
amount. If an organization wishes to pay an hourly fee, a typical non-market rate
would be€4.50 per hour for volunteers aged 23 or over and € 2.50 per hour for
volunteers under the age of 23.
Other persons associated with the organization
Officials are usually not employed by the organization. If they are paid for their
activities, their income is generally taxed in their country of residence. If officials are
paid by the organization, the rules set out under the heading ‘employees of the
organization’ apply.
The athletes and participating teams
The right to tax the income of foreign participants at sports events is delegated to
countries in tax treaties. The Netherlands has concluded treaties for the prevention
of double taxation with more than 90 countries. Most of the treaties contain a so called ‘athletes’ clause’, which assigns the power to levy tax to the country in which
the athlete has competed in an event. However, the Netherlands usually does not
exercise its right to tax foreign participants in sports events in the Netherlands. For
athletes (non-employees) who are residents of a country with which the Netherlands
has concluded a double-taxation treaty this means, for example, that the
Netherlands does not levy tax on the income the athlete earns in the Netherlands
from participating in the event.
If the foreign participant is not a resident of a country with which the Netherlands
has signed a treaty, he or she will still receive an exemption if they are competing in
a tournament such as European or World Championships.
If there is no exemption, the wage tax that the organizer has to withhold from the
athlete’s fee for a sports event can be reduced from 20% to 15% by Order in
Council.
Athletes not resident in the Netherlands who participate in a sports event are not
covered for social insurance. They are not required to be insured.
Participants at the sports event who are resident in the Netherlands will be assessed
for income tax on the income from the event in the normal manner.
Coaches
Coaches are not athletes or members of the participating teams for the purposes of
the above rules. The regular treaty provisions for the performance of work apply to
them, which will normally mean that their income is taxed in their country of
residence.
Turnover tax
The foreign organizer that sells goods or provides services as an enterprise in the
Netherlands is liable for turnover tax. This means that he will be liable for VAT on the
goods and services and will be entitled to reclaim input VAT charged to him in the
VAT return. Entrepreneurship for the purposes of turnover tax is defined in the
Turnover Tax Act 1968. In some cases, an individual athlete qualifies as an
entrepreneur for the purposes of the Turnover Tax Act 1968. Whether the actions
take place in the Netherlands, and are consequently liable for VAT in the
Netherlands, depends on the rules concerning the place of supply of a good or
provision of a service. Services provided by organizations whose objective is the
practice of sport or promoting its practice among their members are exempted, with
the exception of admission to matches. Admission to a sports event is taxed where
the event takes place. If a foreign organization organizes an event in the
Netherlands, therefore, VAT will be charged in the Netherlands on the admission
price. If the event is sponsored and the sponsor’s enterprise is established in another
country, liability for VAT is transferred to the other country. If the foreign enterprise
is established in the EU, the sales invoice must mention the VAT number of the
enterprise in the other country. Outsourcing to and hiring other enterprises for
certain activities, such as merchandising, can create a liability for turnover tax for
the foreign organization in the Netherlands if the work has to be performed in the
Netherlands. The lower VAT rate of 6% applies to tickets for sport s events.
Import of goods for a sports event
The Netherlands Customs will ensure that all duty relief provisions and procedures,
as provided by European Union (EU) customs legislation, are applied. Some EU
provisions on the import of goods contain exemptions for some imports. For
example, Regulation 1186/2009 offers the possibility of an exemption for imports of
pharmaceutical products that are intended for use by persons or animals entering the
country from third countries to take part in international sports events organized in
the EU. There are also rules that allow for the temporary importation to the EU of
goods that will be used for (the preparation of) sports events and will later leave the
EU again, without payment of duties. Examples include technical equipment for the
production and broadcasting of television footage, medical aids and personal
possessions, including sports equipment. For temporary import and export, the
simplified import procedure with the ATA carnet can normally be used. In the
context of sports events, there are also non-fiscal import and export exemptions, for
example for imports of weapons, such as firearms, swords and starting pistols, and
the veterinary provisions relating to the import of horses (show jumping). Persons
coming to the Netherlands from outside the EU also have a limited exemption from
excise duties for tobacco products and alcoholic beverages.
Within this legal framework, the Netherlands Customs will do everything possible to
facilitate the import and export of goods required by all relevant parties.
However, certain formalities will usually have to be met to avail of exemptions for
the temporary import of goods.
Work performed by third parties for the organizer
The organizer may buy goods and services from third parties. The general tax regime
applies to these third parties. This usually means that an enterprise established in
another country is subject to that country’s tax regime and that an enterprise
established in the Netherlands is subject to the Netherlands’ tax regime. This does
not apply to VAT, however, for which the place of performance is decisive.
The national sports organization
If a Dutch sports organization is hired by the international organizer to organize and
hold the international sports event, it will have no impact on the existing ta x position
of the national sports organization or the people working for the organization. If the
organization makes a profit on the activities it may be liable for corporation tax.
Other sports organizations in other countries
Other sportsorganizations in other countries may also be involved in the organization
of an international sports event in the Netherlands. The tax implications of their
activities in the Netherlands are precisely the same as those presented in this
document for the foreign organizer.
Conclusion
The organizer of an international sports event in the Netherlands would be well
advised to contact the Dutch Tax Administration’s National Target Group Sports(see
the address in the introduction) at the earliest possible opportunity.
During meetings between the organizer and the National Target Group Sport further
agreements can be made on issues such as keeping accounts, submitting returns for
the various taxes and designating a contact person for all tax issues for the sports
event.
Annex 1b General description of Dutch tax system and the main taxes
The Netherlands has a modern tax system and is a partner in numerous international
treaties. International regulations have a significant impact on the national legal
system, and some also have direct effect.
The Dutch Tax Administration is responsible for assessing and collecting the state
taxes and for ensuring proper compliance with the legal rules. The Dutch Tax
Administration is an efficient organization that respects the interests of citiz ens and
companies in enforcing the legal rules.
The Dutch Tax Administration has a special department responsible for settling the
tax consequences of sports activities and international sports events.
Taxes in the Netherlands include:
-
Corporation tax (§1.1)
Income tax (§1.2)
Wage tax (and other taxes on wages) (§1.2)
Turnover tax (§1.4)
Dividend tax(§1.5)
Excise duties (§1.6)
Import duties and taxes (Customs) (§1.7)
Local taxes (such as tourist tax) (§1.8)
These taxes, and the formal system of assessment and collection (§1.9)are briefly
described below.
1.1.
Corporation tax
The Netherlands levies corporation tax on the profits of entities established in the
Netherlands or of permanent establishments in the Netherlands of enterprises
established in other countries. Dutch companies are liable for corporation tax, unless
they have an exemption. Other entities (such as foundations and associations, which
are the legal forms typically adopted by sports associations) are only liable for
corporation taxto the extent that they operate as an enterprise. A foundation or
association is operating an enterprise if it has a permanent organization of labor and
capital, engages in commercial activities and operates with a profit motive. The
Netherlands does not tax the activities in the Netherlands of an organization in
another country unless the scale of those activities issuch as to constitute a
‘permanent establishment’ in the Netherlands from which they are carried on. The
tax is then limited to the profits that are attributable to the permanent establishment
in the Netherlands. Whether there is deemed to be a permanent establishment in the
Netherlands depends on numerous factors. Apart from the question of how, where
and by whom the activities are performed, it is also relevant whether the permanent
establishment is a fixed place of business. The corporation tax rate is 25% above a
threshold of € 200,000.
1.2 Income tax
Income tax is levied on the taxable income of private individuals living in the
Netherlands. Income tax is levied on persons not resident in the Netherlands if they
have income in the Netherlands. This may be income from work, but also income
from a business if it is not subject to corporation tax The assessment for social
insurance contributions is integrated in the income tax assessment.
1.3 Wage tax
Wage tax is levied on wages earned in the course of employment. The tax is withheld
from the wage and remitted by the so-called withholding agent (usually the
employer). Wage is broadly defined and covers everything earned from employment.
The wage tax is an advance levy for income tax, which means that anyone with other
income than just a wage must submit an income tax return and the wage tax already
paid will be set off against the income tax. The wage tax also incorporates the social
insurance contributions and premiums for employee insurance schemes and the
income-related contribution under the Health Insurance Act.
1.4 Turnover tax
Turnover tax in the Netherlands is based on the European Directive on the common
system of value added tax (VAT Directive),which may not be derogated from at
national level, except in cases specified in the Directive. Turnover tax is levied on
goods supplied and services provided by enterprises for payment. The rules
concerning the place of supply of goods or provision of services determine the EU
member state in which the enterprise is liable for turnover tax. Certain goods and
services are exempted from turnover tax, as required by the VAT Directive or
otherwise.
Turnover tax is levied on the payment for the goods or services. The general rate is
21% and the reduced rate is 6%.With some exceptions, as a rule the turnover tax
due is leviedon the enterprise that supplies the goods or provides the service.
Enterprises can deduct the turnover tax charged to them from the turnover tax they
owe in their VAT return in so far as the input tax related to the taxable goods or
services.
1.5 Divided tax (interest and royalties)
The Netherlands has a dividend tax. The dividend tax (15%) is withheld by
companies from the dividends they pay to their shareholders. The dividend tax is set
off against the income tax or corporation tax owed by the shareholders, and in some
situations there is a right to a (partial) exemption or a refund of dividend tax. The
Netherlands does not have an advance levy on royalties/interest.
1.6 Excise duties
The Netherlands imposes excise duties on tobacco, fuels and alcoholic beverages.
There are also a number of taxes relating to the purchase and use of passeng er and
motor vehicles. Most of the excise duties are levied on the producers of the products
subject to duties and on import. The taxes on the purchase and use of passenger
cars and motor vehicles are paid by the owner of the vehicle.
1.7 Import duties and taxes
The import and export of goods into and out of the EU are governed by European
customs legislation, including the Community Customs Code (CC) and the Regulation
laying down provisions for the implementation of the Customs Code. National
legislation also applies to the import and export of goods, including the Customs Act
and legislation relating to turnover tax, excise duties and consumption tax (much of
which is also based on European legislation).
The European and national customs rules contain some exemptions, for example the
import of certain goods relating to sports activities. There are also rules for
temporary imports, which allow certain goods that will be used for (the preparation
of) sports events and will then leave the EU again, to be imported duty-free.
1.8 Local taxes
The Netherlands is a decentralized unitary state in which local authorities (provinces,
municipalities and water boards)have their own tax jurisdiction. The local authorities
have autonomy – subject to the provisions of the law on which they are based – to
fix the level of the taxes and /or to grant exemptions from them in certain situations.
As a rule, the local authorities of the prospective host cities are involved in the bid
procedure for a major international sports event. They will be able to inform the
organizer of the sports event of the local taxes and charges.
1.9 The formal tax assessment and collection system
The General Act on State Taxes (levying of taxes) and the Collection Act 1990 (the
collection of taxes) contain the general and formal rules governing the assessment
and collection of taxes. They include the method of submitting tax returns, rules on
legal protection (objections and appeals) and payment periods. The Dutch Tax
Administration is the agency responsible for making further agreements on these
matters should the need arise.