Thursday, 20 October 2016

Proposed 2017 Dutch tax package provisions would affect multinationals

The Dutch Ministry of Finance on September 20, 2016, presented the 2017 Dutch tax package (the ‘Tax Package’) to the legislature, together with certain other tax measures and documents. The most relevant changes for multinational enterprises (MNEs) are as follows:

  • alignment of the Dutch innovation box rules with the Organisation for Economic Co-operation and Development’s (OECD’s) modified nexus approach
  • a gradual expansion of the corporate income tax bracket subject to the lower 20% rate and
  • changes to two interest deduction limitations. 

The documents include a letter in which the Dutch State Secretary of Finance again expressed the intention to lower the top corporate income tax rate in the near future. Another letter states that the State Secretary plans to release a bill in 2017 that will relax the Dutch dividend withholding tax rules.

Source & more info: PwC