Netherlands: Interest deduction limitations for acquisition financing, private equity investments

Netherlands: Interest deduction limitations

The Dutch Cabinet on 21 December 2015 sent a letter to the Lower House that responds to an “initiative memorandum” that proposes changes to the tax treatment of private equity.

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The “initiative memorandum” includes proposals to amend both tax law and the civil and business law relating to private equity investment. In its letter, the Cabinet indicated that the interest deduction limitation for acquisition financing will be tightened, in the 2017 Tax Plan at the earliest. 

The Cabinet also reported that research will be done into the effects of private equity investment in the Netherlands.


Read a December 2015 report prepared by the KPMG member firm in the Netherlands: Cabinet response to the Initiative Memorandum on Private Equity: a tightening of the interest deduction limitation for acquisition financing announced

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