New legislative proposals also lower corporate income tax rates
The Netherlands recently presented its 2019 Tax Plan and introduced a bill to implement the first European anti-tax-avoidance directive (ATAD 1), among other measures. The 2019 Tax Plan includes several proposed measures to reduce corporate income tax rates, with planned yearly reductions until 2021, and changes the Dutch withholding tax regime, beginning in 2020.
The ATAD 1 proposes new rules for earnings stripping (interest deduction limitation), controlled foreign companies (CFCs) and changes impacting exit tax. The ATAD 1 is one of the two legislative pillars of the European Commission's Anti-Tax Avoidance Package. The directive is intended to provide a minimum level of protection for the internal market, while strengthening the average level of protection against aggressive tax planning.
Shortly after the budget, the Dutch government also launched a consultation to give interested parties the opportunity to raise issues related to Dutch tax treaty policy and certain aspects of the proposed CFC measures. The consultation closes on October 22, 2018.
For more information, contact your KPMG adviser.
For an in-depth discussion of the 2019 Tax Plan and other recent Dutch tax developments, see "Netherlands: Tax plan 2019 presented on "Budget Day" and the full budget day report prepared by the KPMG member firm in the Netherlands. For further details on the subsequent consultation, see "Internet consultation on tax treaty policy and designation of low-taxed states" also prepared by KPMG's member firm in the Netherlands.
Information is current to October 02, 2018. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500