Traditionally, the Dutch government presents its budget plan to parliament on the third Tuesday in September. It contains tax proposals for the coming year (the 2025 tax plans). In this article, we address elements of the 2025 tax plans relevant to U.S. multinational enterprises or U.S. investment funds with Dutch entities in their structure. The article begins by addressing relevant changes to the Dutch tax code, specifically concerning the earnings stripping rule. We then set out amendments to the Dutch tax code that facilitate the interaction between certain Dutch subject-to-tax tests (STTs) and the OECD’s global anti-base-erosion (GLOBE) model rules. Subsequently we address the main changes in connection with Dutch withholding taxes and legislation on the tax classification of entities that is already enacted and comes into effect in 2025. We conclude by briefly highlighting some other elements of the 2025 tax plans.
Download their article below and don’t hesitate to reach out to our experts if you want to know more about this topic. This article was first published by Tax Notes International.
We note that the article was finalized and published before the House of Representatives adopted the Dutch 2025 Tax Plans on November 14, 2024. During the parliamentary process, certain changes and amendments were made to the adopted Dutch 2025 Tax Plans, some of which resulted in a withdrawal and change of the proposed earnings stripping rule measures as described in the article. The EUR 1 million threshold in the earnings stripping rule will not be eliminated for real estate companies and, the originally proposed increase of the fiscal EBITDA cap from 20% to 25% will be slightly lowered and the cap will now be increased to 24.5%.
Apart from the section on the earnings stripping rule measures, the article addresses the elements of the Dutch 2025 Tax Plans as adopted by the House of Representatives. Next step is the vote in the Senate.
