Executive summary On 21 September 2021 (Budget Day), the Dutch Government published draft legislation that is intended to avoid double non-taxation resulting from the unilateral application of the arm’s-length principle in the Netherlands. This draft legislation is generally in line with the Consultation Document issued on 4 March 2021. (For details, see EY Global Tax Alert, The Netherlands starts consultation on unilaterally addressing transfer pricing mismatches, dated 4 March 2021.) Currently, the Netherlands’ transfer pricing rules require a unilateral upward or downward correction of the commercially applied transfer prices between related parties to ensure the recognition of an arm’s-length profit for...