The Dutch cabinet on 20 September 2016—“Budget Day”—presented the 2017 tax plan to the lower house. The 2017 tax plan contains bills providing the following:
This year’s proposed tax measures are dominated by simplification and measures to address certain tax arrangements and tax evasion. Many of the proposed measures will take effect on 1 January 2017.
Under the tax plan, there are proposals for changes to a number of specific interest deduction limitations and extension of the first tax bracket for corporations, to which a 20% rate applies. There are also proposals relating to dividend withholding tax refunds for non-residents and exempt amounts under Box 3 for foreign taxpayers.
As part of the 2017 tax plan, the “innovation box” will be brought into line with the recommendations of the OECD’s base erosion and profit shifting (BEPS) Action 5 report, with the most important changes being the nexus approach and the narrowing down of the definition of a qualifying intangible fixed asset. The effective tax rate for profits attributable to the innovation box remains unchanged at 5%.
Read a September 2016 report prepared by the KPMG member firm in the Netherlands: Tax measures for 2017
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor 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 on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.