Dutch Budget Day: main changes for corporate taxpayers
On 21 September 2021, the Dutch Ministry of Finance submitted the 2022 Dutch Budget to parliament. The Netherlands is currently ruled by a caretaker government. Hence, the Tax Plan 2022 mainly consists of previously announced legislative proposals aimed to be in force as of 1 January 2022. The most relevant proposals for corporate taxpayers are the elimination of double non-taxation through transfer pricing mismatches, the tax liability rules for reverse hybrid entities (EU ATAD2) as well as an extension of related persons to individuals for the hybrid mismatch rules.
Download here the pdf-version.
Other proposed changes and announcements include:
- a substantial increase of environmental investment deductions
- changes to taxation of employee stock options
- a limitation for crediting certain taxes against corporate income tax
- a restriction of the offset of pre-2019 ring-fenced holding losses within a Dutch tax consolidated group
- two specific amendments to the Withholding Tax Act 2021 (Wet Bronbelasting 2021)
- legislative proposal new Dutch entity tax classification rules to be published this winter
Finally, we highlight certain earlier adopted measures effective as of 1 January 2022 as well as some earlier announced proposals that are not yet published.
We will keep you updated on further developments. Should you have queries, please contact your trusted adviser at Loyens & Loeff.
Guido DerckxPartner Tax adviser
Guido Derckx, senior tax adviser & partner, is a member of the Family Owned Business & Private Wealth practice group, as well as of the Investment Management and Corporate Tax Services practice groups in our Amsterdam office.T: +31 20 578 56 25 M: +31 6 53 56 41 90 E: [email protected]
Jan-Willem KunenSenior associate Tax adviser
Jan-Willem Kunen, tax adviser, is a member of the International Tax Services practice group in our Rotterdam office. He focuses on transfer pricing and is a member of the Transfer Pricing team. He is also a member of the Digital Economy and Nordics teams.T: +31 10 224 67 98 M: +31 653 57 88 84 E: [email protected]