Netherlands: Budget day proposals, 2016 tax plan

Netherlands: Budget day proposals, 2016 tax plan

The Dutch Cabinet on “budget day”—15 September 2015—presented the 2016 tax plan to the Lower House. This year’s proposed tax measures are aimed at reducing the tax on labor and simplifying tax in general. Many of the proposed measures are scheduled to be effective 1 January 2016. Among the provisions in the 2016 tax plan are the following proposals concerning corporate income tax and dividend withholding tax:

Related content

  • Implementation in Dutch law of amendments to the EU Parent-Subsidiary Directive
  • Country-by-country (CbC) reporting
  • Dividend withholding tax, step-up for cross-border legal mergers and legal divisions 
  • Research and development (R&D) remittance revisions

Individual (personal) income tax proposals

Among the provisions concerning individual taxpayers in the 2016 tax plan are the following:

  • A change to the system of making “protective assessments” on the value that emigrating holders have in “substantial interests”
  • A revision to the taxation of “deemed investment income” 
  • Changes to the gift tax “one-off exemption” for a gift associated with a home 

Other changes

Changes concerning payroll tax and social security contributions include the following proposals:

  • Tightening of standard practice criterion in the work-related costs rules
  • Provisions relating to salary costs (incentive allowances) 

There are also proposals affecting the real estate transfer tax.

 

Read a September 2015 report prepared by the KPMG member firm in the Netherlands: Tax Measures for 2016

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