New plans for reforming the Dutch tax laws
Global Tax Update:October 2017/Netherlands
Yesterday our new government coalition announced its plans for reforming the Dutch tax laws in the coming years in line with international developments. (Global Tax Update:October 2017/Netherlands)
The most important changes in the corporate tax regulations are the following.
- In order to improve attractiveness of the Netherlands as a country of investment, the CIT rate (25%/20% for first EUR 200,000) will be reduced as follows:
- 2018 : 25% / 20%
- 2019 : 24% / 19%
- 2020 : 22.5% / 17.5%
- 2021 : 21% / 16%
- The dividend withholding tax will be abolished as per 2020 with an exception for dividend payments to recipients resident in low tax jurisdictions (to attack the use of low taxed paper companies)
- A withholding tax on interest/royalties will be introduced as per 2020 for interest/royalty payments to recipients in low tax jurisdictions (equally to attack the use of low taxed paper companies)
- As per 2019 a 30% EBITDA rule for interest deductions will be implemented with a EUR 1 million threshold
- Innovation Box CIT rate will be increased from 5% to 7%
- The loss carry forward period of 9 years will be reduced to 6 years
- The 30% tax free allowance regulation period for inbound employees/expats will be shortened from 8 years to 5 years.